Mortgage rates jump after Trump victory

Andrea Blanford Image
Thursday, November 17, 2016
Mortgage rates jump after Trump victory
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The increase has not been bad for business so far.

RALEIGH (WTVD) -- Despite mortgage rates being higher now than they were before Donald Trump was elected president, realtors in the Triangle are not seeing a slowdown in what has been a robust housing market.

"For the sellers who are in the right sweet spot, you can't put a house out there on the market and it not go," said Mark Steward of Triangle Real Estate Group.

That 'sweet spot', Steward says, is a home in good condition, somewhere in the $200,000 range. Steward said despite the spike in mortgage rates this past week, he expects sellers to continue receiving multiple offers and closing within a handful of days.

Brian Grubbs, President and CEO of Raleigh Mortgage Group said the week before the election, 30-year fixed rate mortgages were closing at 3.5-percent. More than a week later, that same mortgage rate is sitting at 3.875-percent.

"Interest rates are still phenomenal," said Grubbs who's advising homebuyers and those wanting to refinance not to panic. "For so long it's been in the low 3's so when people start to hear high 3's or low 4's it just- it concerns them."

Grubbs said the rate increase, driven by uncertainty in the market and a surge in bond yields, will likely have little impact on a well-shielded City of Oaks.

"We have a really robust economy here," he said. "We have jobs here. We have a lot of growth here. Historically, we've always pulled through."

Steward is urging first-time homebuyers to think carefully about locking in on current rates, but expects the market to level out over time.

"With a first-time homebuyer, it's a little tougher for them if they're on a tight budget, making that happen," he said. "But overall, the market is not slowing down."

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