Mortgage Rates Surge After Trump Triumph

(RTTNews) - Mortgage rates are surging after Donald Trump won the US presidential elections.

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 3.94 percent for the week ended November 17, up from 3.57 percent last week. A year ago at this time, the average rate was 3.97 percent.

The Freddie Mac survey also showed that the 15-year fixed-rate mortgage averaged 3.14 percent this week, up form 2.88 percent last week. A year ago at this time, the rate for the 15-year loans averaged 3.18 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 3.07 percent, up from 2.88 percent last week. It was 2.98 percent a year ago.

"Last week's election fell in the middle of our survey week, making it impossible to determine how closely the mortgage rate would track the post-election sell-off in the Treasury market. This week, the verdict is in -- over the last two weeks the 30-year mortgage rate jumped 40 basis points to 3.94 percent, almost identical to the 39 basis point increase in the 10-year Treasury yield. If rates stick at these levels, expect a final burst of home sales and refinances as 'fence sitters' try to beat further increases, then a marked slowdown in housing activity," said Sean Becketti, chief economist, Freddie Mac.