Mortgage rates in the US have risen by more than 50 basis points since the election in November.
A 30 year fixed is now 4.19%, compared with 3.59% immediately prior to the poll. The dark line shows the Freddie Mac 30 Year rate, the lighter line MND 30 Year fixed.
Further confirmation of a significant reversal in mortgage rates, thanks to the changed yield curve. Such rises will create pressure on households whose income has been static for years. Because most households are on a long-term fix, however, they will have some protection, but any new loan will be set at the higher, less affordable rate.
Of course in Australia, most households are on a variable rate – so any upward movement in rates will translate to immediate pain.
