We’re still feeling the economic effects of the presidential election. We also pointed out here over the past week about how bond yields are on the rise and continue to do so. Freddie Mac, the GDP Estimate Revisedsecondary market giant, released today its weekly average mortgage rate survey. According to the latest release, in one week mortgage rates rose by nearly one-half percentage point. That’s a rather dramatic rise. Freddie stated the average 30-year fixed rate rose to 3.94% from 3.57% which was reported the previous week. That’s really about where we were around this time last year however when the 30-year average clocked in at 3.97%.

 

 Interesting to say the least but still very low compared to historical standards. Some of this increase can be attributed to the prospects for faster growth and the potential inflation it can bring. This according to a story today on CNN’s Money website.* Freddie also said the rate on the 15-year fixed rate came in at an average of 3.14%, up from 2.88%.

Freddie Mac has reported their weekly mortgage rate survey by contacting nearly 125 mortgage lenders throughout the nation including credit unions, retail banks and mortgage bankers. The survey is technically performed over the first three days of every week, barring holidays, with the results of the survey released every Thursday morning. This week was chock full of economic data and fueled the recent rally on Wall Street as the Dow is approaching 19,000 and setting another record. Yet as with mortgage bonds, T-bills and Treasuries are still taking it on the chin as investors sell bonds and buy into the stock rally. If the economic groundwork for a turnaround is in fact hardwired, it’s very likely these current rates will be the lowest we’ll see. Perhaps ever.

*CNN Money, November 17, 2016. Mortgage Rates Jump.