Mortgage applications spike after Trump victory

Borrowers keen to lock in low rates while they can

Nov.November 23, 2016 05:15 PM

From the New York website: Fearful of rising interest rates following Donald Trump’s election victory, homebuyers are rushing to land mortgages. The number of home loan applications in the U.S. last week was 5.5 percent higher than a year ago, according to the Mortgage Bankers Association.

Overall loan dollar volume was up 10 percent.

“The increase in purchase activity was driven by borrowers seeking larger loans, with applications for purchase loans above $417,000 increasing 16.8 percent for the week,” MBA’s chief economist Michael Frantantoni told CNBC. “This change led to the average purchase application loan amount reaching a new record of $310,000.”

One reason for the spike in jumbo loans is that the spread between their interest rate and the rate on regular 30-year loans has widened, Frantantoni said.

Applications for mortgages to refinance homes, meanwhile, fell by 3 percent.

The 10-year Treasury yield, a benchmark for mortgage rates, rose in the wake of Trump’s victory as investors predict his planned fiscal stimulus could lead to rising inflation and interest rates.
[CNBC] — Konrad Putzier

Related Articles

Donald Trump, Vanilla Ice and Briny Breezes (Credit: Getty Images)

Trump Town? Briny Breezes wants to sell for $1B

Daily Digest Miami

Missoni Baia lands massive loan, Babylon Brickell owner sells Overtown property: Daily digest

Donald and Melania Trump at the entrance way of Mar-a-Lago (Credit: Getty Images)

With move to Mar-a-Lago, Trump could use Florida real estate law to protect himself from creditors

Daily Digest Miami

Saks makes bid for Barneys, Eighty Seven Park will offer a certified botanist: Daily digest

Donald Trump at Trump National Doral (Credit: Getty Images)

Former members of Trump Doral may have to wait decades to get their deposits back

President Donald Trump (Credit: Getty Images, Mar-A-Lago Club)

Trump properties in Palm Beach County could get $1.5M tax bill

Daily Digest Miami

Edgewater Opportunity Zone site hits the market, FHA will back more condo loans: Daily digest

Daily Digest Miami

WeWork files IPO, Florida needs nearly 670K new apartments to fuel population growth: Daily digest