After slight dips during the first three weeks of the year, mortgage rates snapped back after a record setting week on Wall Street. As the Dow set a milestone by crossing the 20,000 mark, bond prices sank which in turn sent bond yields and mortgage rates upward.
Conforming no-point 30-year fixed mortgage rates are currently averaging 4.25 percent, up from an average of 4.125 percent last week. The 15-year rates are near 3.375 percent.
The buoyancy of the stock market caused an exodus from the bond market and pulled investors into equity trading. The lure of the newly installed Trump Administration's promises to cut taxes and increase infrastructure spending were largely responsible for the stock market rally. As positivity continue to surround the world of commerce, mortgage rates may have be in for a wild ride.
Experts state that predicting where home loan costs will head is difficult but note that relatively speaking they remain historically low.
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