Is the 'Trump Tantrum' mortgage rate spike driving buyer urgency?

Dispatches from agents report stalled deals moving forward and clients coming off the fence
  • The average 30-year fixed-rate mortgage (FRM) spiked to 3.95 percent, from 3.77 percent, according to the Mortgage Bankers Association.
  • This is still lower the 30-year FRM of 3.97 percent recorded last year at this time.
  • Economists say the anticipation of Trump's pledged spending plans and tax cuts have investors anticipating some inflation and a dose of adrenaline to the economy -- and therefore there's been some market volatility.
  • Some real estate agents are seeing consumers reacting to the increases with a sense of urgency by locking in rates and resuming negotiations.

Historically low mortgage rates have been the spoonful of sugar helping buyers swallow steep home prices, bidding wars and scant affordable housing this year. Then, in a fever pitch, rates jumped after the election — and the latest from the Mortgage Bankers Association tell us the 30-year FRM spiked to 3.95 percent, from 3.77 percent. Some agents are seeing consumers to reacting with a since of urgency in the immediate aftermath.