American Federal Mortgage Blog Rates Stubbornly Low Despite Grim Forecast

The knee jerk reaction to the November elections was swift and one directional. Expectations of the new administration's growth orientated policies fueled the speculation of inflation pressures and higher interest rates. As the dust has cleared and the typical gridlock of Washington has taken over, the market has realized change is not easy. With an absence of concrete legislation and a slowing of economic activity, rates have moderated. While rates had jumped as much as a full point from record lows we have now seen a 50% retracement. We have already recovered half of what we lost in the post-election run up.