Mortgage Rates Spike to a 6 Month High as the Dollar rallied on news Donald Trump is the new President Elect of the United States. Bonds tanked early as the market opened and on the heals of last weeks healthy gains in employment. Strong increased average wages has the FED ready to raise interest rates. The US economy added 161,000 new jobs in October and the unemployment rate fell below 5%. Wages rose 2.8% over the past year, the fastest 12-month increase since June 2009.
Atlanta Fed President Dennis Lockhart spoke to a group of Realtors in Orlando, calling the report a “solid” outcome. The Fed has already stated that it intends to raise interest rates in December.
Fed officials believe that the unemployment rate is close to the level where inflation may spike if rates don’t move up. As the labor market tightens the fear is that rising wages will cause wide spread inflation.
If you have been waiting to refinance or still have mortgage insurance you should take a look while mortgage rates are still under 4% APR. Call me for custom options at 801.599.5363 today or get a Quick Quote today!