Touchy Investors in the Bond Market – What it Means for Mortgage Rates

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Filed under: Market Comentary

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It’s interesting to see how much things can change in just a week! So many events that have happened since my video last Wednesday, making it a challenge to keep up with everything that is going on.

How do we tie these events into the real estate market? What does it mean in the near and short term?

Near Term Happenings

Starting on Thursday last week, the bond markets did not like what was going on and we saw some movement. The 2 big headlines were the events at the capital on Wednesday, as well as the Tuesday headlines that the democrats now have the majority over the House, Senate, and the Presidency.

The market wasn’t in love with these changes. It’s an indicator that we could see some inflation due to a handful of policies that are being discussed. Who knows how much it will affect the economy? There has been a threat of inflation for 10 years now, since the last round of stimulus was happening back in 2008.

Long Term Outlook

What will the future hold in store because of these changes? Time will tell! It will be a bumpy ride, but for now the rates are up a bit – about a quarter of a point higher than the lowest point we’ve seen. Rates are still incredible, but a little higher than before. Remember that we hit an all-time low with mortgage rates, so the current numbers are still much better than I’ve seen in past years. Rates seem to be heading back in the right direction and we’ve seen improvement in the last few days.

As always, I’ll keep you posted as things change. Don’t hesitate to reach out if you have questions or you would like to learn more about financing options for buying a home or refinancing.

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