Mortgage Rates Rise Amid Budget Concerns
Mortgage rates rose slightly this week, driven by concerns over government spending and market uncertainty.
What caused the increase?
- Federal Budget Bill: The House passed a major budget bill that would make the 2017 tax cuts permanent. Investors are worried this could significantly grow the national debt, pushing borrowing costs higher.
- Bond Market Reaction: Fears of rising deficits led to a sell-off in Treasury bonds, which caused yields—and mortgage rates—to rise.
- Fannie Mae & Freddie Mac News: Talk of privatizing these mortgage giants added more uncertainty, leading to concerns about risk and affordability in the housing market.
What to watch next week:
Keep an eye on the Senate’s response to the budget bill and any updates on housing finance reform. Both could continue to impact mortgage rate trends. Buyers may want to consider locking in rates before potential increases. Sellers should be aware that affordability concerns could affect buyer demand.
No SSN required. Zero impact to credit. Your Information is never sold.