This is one of the few times we have seen rates increase after a major election, but it was not b/c rates were being held artificially low by any power in government prior to the election. It is simply market forces reacting.
We have had a few fence sitters lately, not wanting to get into the market now b/c they are concerned about rising rates and our new President.
In regard to rates, we remind borrowers that rates remain amazingly low overall. The average rate over the last 45 years has been 8.26%, per the WSJ today. Today’s low rates remain an amazing opportunity, and rates are only expected to get worse.
In regard to our new President, we like to share this “Freakonomics” podcast about the “Power of a President” and how much he can actually affect things. According to the podcast, Presidents actually have much less effect than most people realize.
So there is probably less to worry about than many of us might think.
Here is the podcast: Freakonomics – Does the President Really Matter?
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