Mortgage Rates Still Surging
Saturday, November 26th, 2016 -- 7:55 AM
(AP) -Long-term U.S. mortgage rates continued to surge this week in the aftermath of the election of Donald Trump.Mortgage giant Freddie Mac says the average rate on a 30-year fixed rate loan shot up to 4.03 percent, the highest since July 2015 and up from 3.94 percent a week earlier. The rate on 15-year home loans climbed to 3.25 percent, up from 3.14 percent last week and highest since January.
Long-term U.S. interest rates have climbed since Trump was elected Nov. 8 largely because bond investors believe Trump's plan to cut taxes and spend massively on roads, bridges, airports and other infrastructure could ignite inflation. The yield on 10-year Treasury notes has risen from 1.87 percent on Election Day to 2.38 percent Wednesday.
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