Donald Trump's victory in the recent election has stirred uncertainty regarding the future of mortgage rates even before he resumes office. During his campaign, Trump pledged to enhance homeownership affordability by reducing mortgage rates through anti-inflation policies. However, some economists and analysts suggest that his proposed economic agenda might lead to an increase in mortgage rates.
Mortgage rates are influenced by various factors, including movements in the yield for U.S. 10-year Treasury bonds, which serve as a benchmark for pricing home loans. Despite the Federal Reserve's interest rate cut, Treasury yields have risen in recent weeks. The post-election period saw a surge in yields, causing the average rate on a 30-year mortgage to rise to 6.79%.
