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Mortgage rates jump 20 basis points post-election

The bond market started going haywire yesterday -- here's the result
  • The bond market yesterday was splattered all over the windshield, taking mortgage rates up with it.
  • Once you have destabilized the bond market, re-stabilization takes time. Often a long time.

This week’s election surprise has unpleasant consequences for mortgages and housing. Immediately, as in today. And in the longer term, possibly severe ones. That said, fears of the Trump Presidency are likely to be either overdone or misplaced. Most urgent: The bond market yesterday was splattered all over the windshield, taking mortgage rates up with it. The 10-year T-note has ballooned to 2.07 percent, the first time so high since last January and wiping out six months of chart support near 1.80 percent -- and the next support is near 2.50 percent, mortgages 4.25 percent-4.50 percent. "Mortgage rates have spiked more than 20 basis points following the results of the presidential election on Tuesday, as we assess the degree of political and economic uncertainty that Trump's win introduced to the market and as investors move away from U.S government assets, including U.S. mortgage-backed securities, in favor of relatively safer investments," said Erin Lantz, Zillow Group vi...