30- Year Fixed Rate Mortgages rise due to Trump Tax Cuts Assumptions
People are outraged as the average 30- year fixed rate mortgage rose to 3.85 last week.
The 15-year home loan, often used by homeowners who refinanced their mortgages, also rose slightly to 3.15 per cent from 3.13 says Mortgage Expert Freddie Mac.
Mortgage rates, already at a historical low, are higher than they were last year. The increase reflected upon the presumption that President Donald Trump and the Republican majority Congress would approve tax cuts. These cuts were believed to stimulate growth and possibly increase the deficit.
Rates on long-term home loans typically track the yield on 10-year Treasury notes.
The rate on adjustable five-year mortgages blipped up to 3.20 per cent from 3.17 per cent, Explains Freddie Mac.