WASHINGTON – Long-term U.S. mortgage rates continued to surge this week in the aftermath of the election of Donald Trump.
Mortgage giant Freddie Mac says the average rate on a 30-year fixed rate loan shot up to 4.03 per cent, the highest since July 2015 and up from 3.94 per cent a week earlier. The rate on 15-year home loans climbed to 3.25 per cent, up from 3.14 per cent last week and highest since January.
Long-term U.S. interest rates have climbed since Trump was elected Nov. 8 largely because bond investors believe Trump’s plan to cut taxes and spend massively on roads, bridges, airports and other infrastructure could ignite inflation.
The yield on 10-year Treasury notes has risen from 1.87 per cent on Election Day to 2.38 per cent Wednesday.