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Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

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RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

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China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Categorized | Property

US mortgage rates jump after Trump win

Posted on November 17, 2016

Mortgage rates have jumped higher following the US presidential election, with expectations that it could lead to a slowdown in housing activity.

Long dated, 30-year fixed-rate mortgages averaged 3.94 per cent over the past week ending November 17, up from 3.57 per cent for the previous week, according to data from Freddie Mac, one of the agencies that purchases mortgages eligible for government backing.

The increase comes as government bond yields have risen sharply since Trump secured a surprise election win. The 30-year rate is still below the 3.97 per cent reached this time last year as the Fed was preparing to raise rates for the first time since the financial crisis.

“If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity,” said Sean Becketti, chief economist, Freddie Mac.

15-year mortgage rates averaged 3.14 per cent, up from 2.88 per cent and 5-year adjustable rate mortgages averaged 3.07 per cent, up from 2.88 per cent.