Business Magazine

Interest Rates After the Election

By Homesmsp @HomesMSP

Monday the bond market was quiet, Tuesday it got worse as the election went on.  The bond market and stock market were watching the election and positioning themselves just in case!!  Wednesday the stock market dropped quickly and the bond market got better - therefore mortgage interest rates improved! 

Wednesday's reaction is more than likely a concern that there is fiscal uncertainty in Washington DC.  At the beginning on 2013 there is a series of tax cuts worth billions of dollars that will expire for U.S. taxpayers.  There are spending cuts as part of last year's budget negotiations that will hit the economy.  Analysts worry that the rising taxes and cutting spending will push the U.S. into a recession.

Economic uncertainty usually helps lower mortgage rates and we saw that on Wednesday.  Investors are jumping into mortgage-backed bonds as they are relatively safe, that helps lower mortgage interest rates.

There is also more concern about the European economy.   EU forecasts for growth in Europe was downgraded for the next two years.  That also helped the bond market Wednesday.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Five Things I Loved About My Wedding – Kayleigh

    Five Things Loved About Wedding Kayleigh

    This is the fourth in a series of blog posts with a focus on those little things that make a wedding special. It is called Five Things I Loved About My Wedding. Read more

    The 24 May 2017 by   Wedincentralpark
    LIFESTYLE, WEDDING
  • Democracy and the Politics of Intolerance

    Democracy Politics Intolerance

    A democracy allows government to reflect the will of the people. Or does it? Here I would like to understand a bit better the dynamics through which radical... Read more

    The 24 May 2017 by   Dlittle30
    SOCIETY
  • Cable Girls – 1920s Era Women with a Modern Twist

    Cable Girls 1920s Women with Modern Twist

    Las Chicas del Cable – four women in 1920s Madrid – Cloche hats, colorful flapper frocks and bobbed hair. What’s not to enjoy about the new Netflix produced... Read more

    The 24 May 2017 by   Glamourdaze
    FASHION, LIFESTYLE
  • BADASS Art Journal Page - All of Me....

    BADASS Journal Page Me....

    Embracing all parts of me and surrounded by miracles - Art Journal PageI found a couple of passports photos of myself recently and I was criticizing them becaus... Read more

    The 24 May 2017 by   Realityarts
    CREATIVITY, SELF EXPRESSION
  • Dutch Apple Loaf

    Dutch Apple Loaf

    This Dutch Apple Loaf is my kind of cake, soft and moist,  and filled with juicy chunks of apple and pecan nuts.  For a lovely hint of sweetness I have... Read more

    The 24 May 2017 by   Shadesofcinnamon
    FOOD & DRINK, RECIPES
  • A Jumbo Passion Project

    The climber, facing away from the wall, gingerly peers over his toes to watch his sky-blue T-shirt flutter to the ground. He takes a deep breath, then turns in... Read more

    The 24 May 2017 by   Thervproject
    OUTDOORS
  • Top 3 Dim Sum Restaurants in Chinatown

    Restaurants Chinatown

    Chicago’s Chinatown is home to some of the best restaurants in the city. Sundays can be especially crowded in this area, usually around brunch, as dim sum, a... Read more

    The 24 May 2017 by   Urbanmatter Chicago
    TRAVEL

Paperblog Hot Topics