Wednesday, 22 of November of 2017

Economics. Explained.  

Mortgage Rate

July 25, 2017

Right after the November election mortgage rates  jumped b 0.7% from 3.5% to 4.2% as market participants believed that President Trump’s proposed individual and corporate income tax cuts.  repatriation of corporate earnings currently locked overseas, and significant relief from the currently onerous regulatory burden, would boost GDP growth significantly, boost inflation, and push long-term interest rates higher.

Mortgage rates have declined about 0.3% since the end of last year to 3.9% as the legislative proposals described above have (at a minimum) been delayed and some economists believe it will not be passed at all.  If the Fed raises rates one more time this year and the inflation rate begins to climb, by the end of this year the 30-year mortgage rate is probably going to be slightly higher at about 4.2%.

Stephen Slifer

NumberNomics

Charleston, SC


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