The “Trump Bump” In Reverse
With one interview, Donald Trump improved mortgage rates for millions of U.S. consumers.
The Wall Street Journal reported Trump said the dollar was getting “too strong” and that he likes a “low-interest rate policy.”
Trump is getting friendlier, too, toward the sitting Federal Reserve Chair, Janet Yellen, whom he has criticized for keeping rates too low.
These developments are leading to the lowest mortgage rates of the year. Freddie Mac, in its weekly rate survey, reported a 4.08% 30-year fixed rate.
That’s the fourth consecutive week of declines, and further confirmation of the 2017 “Downward Drift” predicted by The Mortgage Reports earlier this year.
Is it the right time to get a mortgage, or should today’s homeowner wait for even lower rates?Verify your new rate (Jul 16th, 2020)
Trump Rethinks Everything: Post-Election Rate Increase Loses Steam
Rate-unfriendly initiatives have failed to materialize so far in 2017.
Recently, Trump’s health care reform bill was not put up for a vote in Congress. Investors read it like this: If Trump couldn’t move forward this major focus, what other reforms would deflate?
Remember what caused rates to go up in the first place. The market predicted Trump would push through:
- A $1 trillion infrastructure package
- Major tax cuts
- A Federal Reserve that’s less wary about rate hikes
Delayed initiatives — or ones that are being reconsidered altogether — have investors saying, “Tell me again why rates should go higher.”
The Wall Street Journal report, released last week, correlates with significant improvements in mortgage rates since then. It seems the White House is warming up to the idea of low rates, and that could benefit consumers.
What Are Today’s Mortgage Rates?
At a historical perspective, any rate in the 4% range is “very good”. Thirty-year mortgage rates have averaged more than 8% over the 45 years that Freddie Mac has been tracking them.Verify your new rate (Jul 16th, 2020)