Everyone is talking about Rates.
When will rates go up? What will the Fed do? What will Trump do? It is happening right now. Rates actually always go up and down. If you look at chart like I do you will see a constant change in directions. There are too many influential factors to our mortgage rates. It is not the Fed or Trump alone. It is a million other economic factors. The increase in rates which was ill timed with the election was mainly due to Treasury Bonds being sold or “dumped” in anticipation of markets getting worse. In fact the S&P and other markets have not been impacted the way we anticipated. Many people believed that markets would crash over night. That didn’t happen. Since people believed that there was some anticipatory decisions made to liquidate bonds. Here we sit with an artificial raise in rates. Artificial because this was not planned by our economic leaders at the Federal Reserve. In fact the decision the Fed has to raise rates has been held over our head like a cartoon rain cloud. There has always been a decision by the Fed to postpone raising rates. They are very concerned about our housing market being effected too greatly. Economic data doesn’t lie but it doesn’t come out as fast as it should. My opinion is once we are able to analyze the data from the rate increase at the beginning of the month we will see that we have pushed buyers out of the market. Refinances will be close to non-existent. One would hope that this data would be taken very seriously by Janet Yellen and the Fed. There has already been talk about back peddling out of increasing rates this next meeting. Take a look at the month of November for our 10 year Treasury Bond. Mortgage Rates basically went up a half percent in a few days. We are patiently waiting and hoping they stabilize. This definitely makes for a nervous market.