Rates have been rising for the last 6 months until now and here is why: when Trump won the election, investors made assumptions about the future of the stock market and monetary policy. This caused stocks to rise rapidly which has a negative effect on mortgage rates. The result was that mortgage rates rose to over 4% on most programs.
Just this week, geopolitical concerns (which tend to help rates and hurt stocks) have been added to the mix with several potentially alarming headlines. In a very brief time, the US has bombed Syria, been threatened with nuclear weapons by North Korea, dropped the biggest available non-nuke in Afghanistan (some speculate as a show of force), sent an "armada" of warships to East China Sea (an overt show of force), and expressed that relations with Russia are at an all-time low.
What happened next was a total surprise and President Trump made a public comment that the US Dollar is “too strong.” This sent mortgage rates to a new low for 2017 as the market was already in rally mode. This is due to the tendency for rates to go down if the value of our currency goes down.
All this means that if you have been waiting for that 3-point-something interest rate, your wait is over and you can now get back in on yesterday’s gravy train. Call me for custom options at 801.599.5363 today or get a Quick Quote today!