From CNBC: 2024-11-06 13:40:52

President-elect Donald Trump’s victory led to a rise in the U.S. 10-year Treasury yield, causing mortgage rates to climb as well. The average rate on the 30-year fixed mortgage jumped 9 basis points to 7.13%, the highest since July 1. Housing stocks, including big builders and retailers like Home Depot and Lowe’s, fell sharply in response.

Builders stocks are sensitive to mortgage rates and inflation expectations, impacting long-term rates. While Trump didn’t provide a detailed housing plan, he mentioned deregulation and opening federal land for more home construction. The National Association of Home Builders congratulated Trump and looks forward to enacting a pro-housing agenda.

Mortgage rates have been rising since hitting a low of 6.11% on Sept. 11, despite a recent rate cut by the Federal Reserve. Stronger economic reports in September and October caused bond yields and mortgage rates to increase. A $400,000 home with a 20% down payment would see a monthly payment increase of $216.

Existing home sales surged this fall, with pending sales rising 7% in September compared to August. The increase is attributed to more supply, with 29.2% more homes actively for sale in October compared to the previous year. The path ahead for the housing market will be determined by inflation, the economy, and Treasury issuance.



Read more at CNBC: Mortgage rates surge on Trump victory, housing stocks to fall