Locke Your Loan Update: What’s Happening in the Market Post-Election

The election results are in, and we have a new president-elect! No matter where you stood, we can all agree it’s time to focus on moving forward and making the best of what’s ahead.

Today, we’re seeing stocks on a high, while mortgage bonds are taking a bit of a dip. This is what we call a “risk-on” move—investors feel optimistic and are channeling money into stocks instead of bonds. With a lot of talk around potential inflation, some are making moves sooner rather than later, adding a little excitement to the market.

With the election behind us, everyone’s eye is on the Federal Reserve. They’re meeting this week, and tomorrow at 2 p.m. ET, they’ll release their statement. Right now, a 0.25% rate cut is widely expected, but future cuts aren’t guaranteed and will depend a lot on how inflation trends play out.

Federal Reserve Chair Jerome Powell’s comments will be a big deal. He’s likely going to keep things factual and stick to the data—which, honestly, is a bit of a mixed bag right now. We’ve seen strong job numbers, some slower growth, and a few hiccups from things like strikes and weaker business outlooks. This means the Fed may not feel confident making big changes right now but will keep a close watch on what happens next.

And in bond news, yesterday’s 10-year bond auction went pretty well, helping bonds recover a bit. Today, there’s a 30-year bond auction at 1 p.m. ET, which could give the market a little nudge.

So, what does this mean for you? Basically, the market’s in a transition phase. We’re watching it all closely to help guide you through any potential impacts on mortgage rates and buying power. As always, we’re here to make sure you’re well-informed and prepared, every step of the way.