Mortgage rates edged higher this week while continuing to stay below their recent highs. If you’re wondering why this gift of softer rates has fallen into borrowers’ laps in recent weeks, look no further than the Trump White House.
Mortgage rates had risen sharply, in part because markets anticipated rapid cuts to taxes and regulation, coupled with increased spending on infrastructure. And the assumption was all of that would all spur growth and inflation.
But the administration’s recent setbacks, including its stinging defeat on health care, have changed expectations for when those changes will actually happen.
That reassessment has reversed some of the gains in the stock market and has pushed mortgage rates down — though only temporarily. As the Federal Reserve hikes interest rates, the sub-4 percent mortgage rates borrowers enjoyed in 2016 aren’t likely to return for the foreseeable future.
This week’s mortgage rates
The benchmark 30-year, fixed-rate mortgage rose this week to 4.30 percent from 4.29 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 3.83 percent. Four weeks ago, the rate was 4.31 percent. The 30-year, fixed-rate average for this week is 0.14 percentage points below the 52-week high of 4.44 percent, and is 0.78 percentage points above the 52-week low of 3.52 percent.
The 30-year fixed mortgages in this week’s survey had an average total of 0.26 discount and origination points.
■ The 15-year fixed-rate mortgage was flat at 3.49 percent.
■ The 5/1 adjustable-rate mortgage rose to 3.49 percent from 3.44 percent.
■ The 30-year fixed-rate jumbo mortgage rose to 4.23 percent from 4.22 percent.