Mort­gage rates ris­ing

Daily Freeman (Kingston, NY) - - BUSINESS -

Don­ald Trump’s pres­i­den­tial vic­tory is al­ready hav­ing a big impact on one part of the econ­omy—hous­ing.

Mort­gage rates jumped over the past two weeks. In­ter­est for the av­er­age 30-year fixed-rate mort­gage was 3.47 per­cent at the end of Oc­to­ber, ac­cord­ing to Fred­die Mac, the gov­ern­ment-backed pur­chaser of home loans. That av­er­age has climbed above 4 per­cent.

That in­crease mat­ters a lot for monthly pay­ments.

At cur­rent rates, it would cost roughly $830 a month to pay the prin­ci­ple and in­ter­est on a $220,000 home. The ris­ing rates have caused the pay­ment to go up by $43 a month since late Oc­to­ber.

Some home­buy­ers can likely find a way to spare an ad­di­tional $516 a year on their mort­gages, so sales shouldn’t be dis­rupted much, ac­cord­ing to many real es­tate ex­perts. Rates are now roughly where they were at the start of 2016.

Mort­gage rates have in­creased along with 10-year Trea­sury notes. In­vestors an­tic­i­pate that the Trump ad­min­is­tra­tion will run a higher bud­get deficit, prompt­ing a rise in in­fla­tion and higher rates.

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