Rising mortgage rates are expected to climb higher within the next few weeks, in part because of Donald Trump’s presidential victory.
The Washington Post reports that the 30-year fixed-rate average climbed to 3.57 percent, up from 3.54 percent a week ago. This is the first time since June that the 30-year fixed rate has been above 3.5 percent in consecutive weeks.
The Trump victory added volatility to the financial markets with long-term bond yields spiking. In a span of just two days, the 10-year Treasury yield soared 24 basis points to 2.01 percent, its highest level since January. Because the movement of long-term bonds tends to indicate whether mortgage rates will move higher or lower, this week’s rapid rise signaled that home loan rates are headed up.