Mortgage Rate Predictions: The Trump Effect Is Stalling the Housing Market

Mortgage rates can change daily and even hourly. Tharon Green/CNET Mortgage rates aren't budging, and neither is the housing market, as investors continue to weigh the unknowns of President Trump's economic policies. According to Bankrate, the average rate for a 30-year fixed mortgage crawled past 7% last week, up from around 6.75% a month ago. However, despite an increase in housing inventory, pending home sales plummeted by 6.3% last month, according to the National Association of Realtors. "At this critical stage of the housing market, it is all about mortgage rates," said Lawrence Yun, NAR chief economist, in a statement last Thursday. "Lower mortgage rates are essential to bring homebuyers back into the housing market." Most analysts predict that a meaningful drop in mortgage rates isn't on the horizon. We're likely to see more economic volatility over the coming weeks and months. Overall, prospective homebuyers should expect rates to remain near 6.8% for the remainder of 20 ... Read full article.