In the first full week of November 2018, mortgage rates hit their highest levels since 2011 after the a robust jobs report release.
According to Zillow director of economic research Aaron Terrazas, the report exceeded expectations with "exceptionally strong employment and wage growth," combined with Federal Reserve data suggesting that the national economy can absorb more rate hikes. After the midterm election day on Tuesday, November 6, the impact on rates was "modest."
Looking forward, however, the fallout from the election may paint a different picture. A divided Congress would likely have a harder time enacting new legislation: Odds of new tax cuts are diminished, but so are the odds of any improvement in the fiscal outlook. As a result, upward momentum for rates is likely to continue in the near term.
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