Can Rates Fall Again? Heck Yeah! New Conforming Loan Limits
One of the primary reasons behind the recent rate increases is the expectation that Mr. Trump will deregulate the economy and bring about more economic growth. B/c of this expectation, investors have moved into stocks and out of bonds, pushing rates up 5/8% since the election.
But, while the stock market loves “Trump the Deregulator,” it will likely hate “Trump the Protectionist.” So, if Trump’s protectionist talk resurfaces in force at any time, we will likely see rates come down.
Similarly, if Trump’s willingness or efforts to deregulate gets stalled at any point, rates could come back down.
And, as we repeat often, any surprisingly negative economic news will also cause the jittery markets to react sharply and push rates down.
Lastly – 2017 Conforming Loan Limits have increased to $424,100 (from $417,000) for Low Balance, and to $636,150 (from $625,500) for High Balance.
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