The cost of buying a house is more expensive after mortgage rates shot up on Wednesday following Donald Trump's win in the presidential election.
Bond markets reacted, pushing the yield on the 10-year Treasury to 4.43 percent. A rising bond yield historically leads to higher mortgage rates.
Trump has promised to lower mortgage rates if elected but did not offer any plan on how he would do that.
His victory has fueled concerns over the growing national debt that could rise even more with proposed tax cuts, tariffs and wage inflation if there is a large-scale deportation of undocumented immigrants.
These policies could lead to higher inflation and more government borrowing which has already pushed the yearly interest on the national debt to $1 trillion.
Mortgage rates have steadily risen in the last five consecutive weeks, hitting 6.72 percent according to the National Association of Realtors.
The organization says the outcome of congressional races could also affect mortgage rates—if Republicans maintain control of the House, it speculates that rates could rise further.
The Federal Reserve is widely expected to announce a 0.25 percent rate cut Thursday during its policy meeting.
