As new administration sets in, fiscal policies take notice.
As the weekly jobs reports come in, economists are uncertain of several aspects of the current market. This has caused the 30-year fixed rate mortgage to dropped to 4.17%. This is slightly lower than last weeks 4.19% but still higher than the 52-week rate of 3.65% from last year.
The 15-year Fixed-rate mortgage has also lowered a bit from last week's rate of 3.23%. With the new rates in, Home buyers are urged to lock into a loan as they are still at historic lows. The current administration is set to make huge changes to Dodd-Frank and the FHA Mortgage Insurance Cut, urging potential homebuyers to jump into a market that seems to be running low on inventory.
Jobs are getting better...at a snail's pace.
When the December jobs report came out, economists were eager to see if the holiday season may have stabilized a choppy jobs market. The results were bittersweet. While jobs were up, they did not show the level of growth that experts were hoping for. Wages, on the other hand, were high, logging in at 0.4% gains. Higher wage gains don't always mean a stronger economy. The higher wages can trigger inflation and interest rates on a weak economy that may not be healthy to keep up.
The housing market will be a little rocky for the next few weeks
With the new administration team getting unpacked for the long haul, the waves of interest rates and jobs reports will undoubtedly be unstable for the first quarter until any real changes have time to take effect. New policies will be implemented and more stringent and controlling loan requirements will probably get the ax. Regardless of the situation in Washington, 2017 will have higher interest rates than 2016 and with that comes a push for economic normalization.
For more information on current home rates, including yours, visit horizonlendingservices.com
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