Mortgage rates have surged nearly half of a percentage point since Donald Trump’s election, increasing borrowing costs in an already expensive Southern California housing market.
Analysts say reasons for the change are two-fold: Foreign investors have pulled out of the bond market because of a lack of confidence, and American investors are taking money out of bonds to put into stocks for a variety of reasons.
Both moves have pushed mortgage rates to their highest point in 2016.
Even though mortgage rates are still considered near historic lows, borrowers feel any bump up in the rate.
For a typical 30-year fixed rate mortgage, the interest rate was 3.59 percent the day before the election, said Mortgage News Daily, and has continued to rise, hitting 4.02 percent Wednesday morning.
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