Mortgage Rates Under Trump: What's Next?

Email archive from Nov 7th 2024 

The election results have impacted the housing market, driving up 30 year mortgage rates from 6.7% last week, to a high of 6.8% after the election.

Many are now asking: What's next? Let's break it down. 

Housingwire.com reports that "Trump's win pushed the 10-year yield to 4.45%", a key indicator for mortgage rates. 

Higher mortgage rates tend to slow down construction jobs. Historically, when rates range between 6.75% and 7.75%, the job growth sector starts to stall. 

The Federal Reserve now faces the challenge of controlling inflation while supporting employment. If they raise rates to counter tariff-driven inflation, it could trigger a recession, which no one wants. 

Where rates will go from here remains uncertain.  

The Federal Reserve's primary goal is to avoid destabilizing the labor market, and we trust they'll make measured decisions. 

UPDATE Nov 7th at 5pm EST: Fed just cut its interest rate by a quarter point. 

More on this as it winds through the system! But the tide looks like it might be turning already!

For more insights on this topic, feel free to reach out to me. 

As more information comes in that could affect the housing market, I will let you know!

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