Updated over 9 years ago on . Most recent reply
Interest Rates going up or Staying Put
Interest rates just saw a spike after Donald Trump got elected on Tuesday night. Do you think that interest rates are going to start climbing or do you think that they are going to stay put?
I read somewhere that the unexpectedness of Donald Trump would keep people hesitant from investing in more risky assets so mortgage backed securities would be where people turn keeping mortgage rates low. What do you guys think?
Most Popular Reply
Rates will go up in my mind without a doubt in 2017. Not really related to Trump. The Fed is controlled by Congress. Banks are screaming for rates to go up. They (The Fed) will consider doing it in December if not then likely in spring of 2017. Not by much, just a little bump to test the waters like dipping your toe in the water. From there it will be a wait and see. The main reason will be to keep inflation under control IMHO.