No matter what your political affiliation is, the fact of the matter is that with Trump being elected as the new president of the United States, current mortgage rates have gone up. In fact, they have gone up very quickly and steeply. We’d like to say they will go down soon, but no one really knows where the interest rates, or current VA IRRRL rates, will go from here. The general consensus, however, is that rates will continue to rise.
Why and How Did the Election Raise Rates?
A neat word that people have invented to describe the upcoming plans and trends in the economy is “Trumponomics.” In the most basic terms, Trumponomics is intended to and will likely result in economic growth. Time will tell how well this plays out in our actual economy, but for now, this is the plan. It is also a huge contrast from the past decade or so in which we haven’t had much economic growth.
So what about Trump’s position specifically would grow the economy? First of all, Trump has shown that he is a proponent of less bank and business regulation. He also wants to have a stronger U.S. dollar and wants to achieve that through bringing U.S. money back into the U.S., meaning different businesses, agencies, and organizations will be using foreign goods and services less frequently. He is also a supporter of tax cuts. But the biggest indicator that interest rates would go up was that, in debates, Trump specifically said that we needed higher rates and that interest rates have been too low.
What Should You Do about the Current Mortgage Rates?
Don’t wait to lock in a rate. If you are considering getting a new mortgage loan, especially a VA IRRRL, within the next few months or years, lock in a rate now. Rates are expected to continue rising and it’s uncertain when they will come back down. It’s possible that VA IRRRL rates will not be as low as it is today for quite some time.
At Low VA Rates, we specialize in VA loans for veterans. Here we offer any VA loan option out there. We often promote the ARM and hybrid ARM options because the interest rates start out so low on them, and these options allow you to easily take advantage of any drops in rates. However, with the market changing so much, it may be wise to get into a fixed-rate loan and then plan on refinancing with an IRRRL when rates drop again. This will protect you from major rises in the market. Although it’s important to note here that ARM rates haven’t changed yet; they are still at historic lows. It’s possible for you to lock in a 7-1 hybrid ARM loan that will be fixed for the first 7 years. That means you will be protected from fluctuating mortgage rates for 7 out of 8 years that Trump would be serving if he were to be elected for a second term.
As far as refinance rates for the VA loan go, VA IRRRL rates today are going to see some hikes as well. However, IRRRL rates will always be designed to save you money on your home through the refinance.
Low Rates Are Still Available
At Low VA Rates, we work hard to provide you with an excellent mortgage rate. Contact us now at 866-569-8272 to chat about your options. We understand that everyone’s situation is different, and we always help whoever we can, whether you’re hoping to finance with a VA hybrid loan, fixed-rate loan, or VA IRRRL, we’ll help you through it.