OPTIMISM OVER TAX REFORM BUMPS RATES
Interest rates for a conventional loan barely ticked up by 0.125% this week, however FHA and VA rates remain the same. Pressure on the bond market is coming directly from optimism over tax reform legislation being approved in the near future. Existing home sales beat expectations and Q3 GDP was revised to show it was slightly better than originally reported. If the positive economic news continues to persist in the coming weeks we can expect rates to be under further pressure. If the slew of good news begins to slow down, the expectation is rates will remain flat for the remainder of the year.