What Drives Mortgage Rates?

Last week I wrote about the Trump Effect on mortgage rates as we've seen about a .50% rise in mortgage rates since the morning of the election. If you missed it, here is a link:

http://www.rtcmortgage.com/The+Trump+effect+on+mortgage+rates.

I'd also like to thank the many people that sent such positive feedback on the article.  I always welcome your comments.

The stock market continues to enjoy the "Trump Bump" with the S&P 500 up over 3% since the election as money managers rotate funds from bonds (including Mortgage-Backed Securities) to stocks when the stock market is rising.

Optimism over an improved economy under the Trump Administration is not the only factor that influences mortgage rates. The potential for inflation and the future decisions by the Fed are also weighing on interest rates right now too.

Review the information below for a better understanding of what drives mortgage rates: