Sunday, December 22, 2024

US Mortgage Rates Rose Again in Week After Trump’s Victory

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(Bloomberg) — US mortgage rates continued to rise, building on a recent run-up after Donald Trump won the presidential election.

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The contract rate on a 30-year fixed mortgage rose 5 basis points to 6.86% in the week ended Nov. 8, the highest since July, according to Mortgage Bankers Association data issued Wednesday. The rate has climbed 72 basis points in the past six weeks, the most in two years.

Mortgage rates move in tandem with Treasury yields, which have risen recently as a series of strong economic data will likely keep the Federal Reserve cautious in its approach to cutting interest rates in the coming months. Data out later Wednesday is expected to show US inflation moved sideways at best in October.

Borrowing costs have jumped further since Trump’s victory, as investors brace for higher inflation and budget deficits under his administration.

MBA’s refinancing gauge fell for a seventh week, the longest stretch since April 2022. Applications to purchase a home picked up slightly.

The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.

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