Trump's Economic Policies: A Double-Edged Sword for Mortgage Rates

Donald Trump's election victory is influencing expectations for mortgage rates. While he aims to make homeownership affordable, his economic policies may inadvertently drive rates higher. This complex scenario concerns economists, who are cautious about predicting steady declines in rates despite previous forecasts of falling mortgage rates.

Donald Trump's recent election victory is impacting mortgage rate predictions, triggering uncertainty about their future path. Despite his goal to make homeownership more affordable, Trump's proposed economic policies might lead to increased mortgage rates, setting a challenging stage for first-time homebuyers.

Economists point to various factors influencing mortgage rates, such as US Treasury bond yields, which have been affected by investor expectations regarding Trump's plans. The proposed economic agenda, including tariffs and reduced regulations, might boost economic activity but also increase inflation, thereby pushing mortgage rates higher.

Future mortgage rate forecasts remain uncertain amidst this economic backdrop, with industry experts cautious about projecting a significant drop. Analysts suggest that Trump's ability to manage the federal deficit will play a crucial role in determining the trajectory of mortgage rates under his administration.

(With inputs from agencies.)