Higher mortgage rates after Trump victory

Higher mortgage rates after Trump victory

AMARILLO, TX (KFDA) - When it comes to buying a home, most people are in no rush so they can find the prefect one. But the victory of president-elect, Donald Trump, has sent many home buyers into a race to secure a home now.

"The surprising result of the presidential election and the economy could have an affect on that," said VP of Mortgage Loans at I-40 and Coulter in Amarillo, Shawna Bachman. "The market doesn't react well to surprises, so that very well could have something to do with it."

Bachman says a 30-year fixed-rate mortgage has increased from 3.5 to over 4% in just one week -- the biggest increase since 20-13. That means the payment for a $200,000 mortgage has gone up by about $56 dollars a month.

"We expected a rate change," said Bachman. "It just happened before we expected it and it could settle out, it's anyone's guess."

Other financial experts say we're seeing this short rise because of the speculation that a Trump administration is going to mean more government borrowing, more government spending, and over the long term -- higher inflation.

But despite the increase in rates, Bachman says it's still a sellers market. Although mortgage rates are ticking up, they remain at historic lows and experts say people should not panic.

"This could lead to a stronger economy," said Bachman. "This is good for bank rates, lending may go up, and what people earn on money is going to go up as well, which is good."

Other housing experts presented a divided opinion on what Trump's policies will bring to the economy and housing market. The first week, however, has been positive.

Copyright 2016 KFDA. All rights reserved.