Like it or not, it is likely that any changes to American’s income tax system will result in higher mortgage rates, at least for now. Stocks are always looking for a good reason to rally and historically have pushed up whenever there is wind that taxes could go down. Even though the proposed tax plan may not actually accomplish lower taxes, the talk does create a buzz that is likely to spell a rally for stocks. Mortgage rates have been steadily on the way up since November 1st, with the 30-year fixed hovering at just under 4% APR for most programs. As we enter the holiday season it is likely they will jump over 4%, especially if retail sales are higher than expected.
With Wall Street looking for a reason to rally, US Stocks will likely surge into the new year. Any perceived Improvement in the economy is almost always bad for mortgage rates. Homeowners looking to move or lock in a good interest rate by refinancing may be soon be faced with a mortgage interest rate over 4.5%.
If you have been waiting to refinance or still have mortgage insurance you should take a look while mortgage rates are still low. Call me for custom options at 801.599.5363 today or get a Quick Quote today!