Mortgage Rates Rise Amid Post-Election Economic Concerns

Following Donald Trump's presidential election victory, mortgage rates have risen, driven by a spike in the U.S. 10-year Treasury yield and concerns over inflation from proposed fiscal policies. Despite anticipated federal interest rate cuts, mortgage rates are expected to stay high due to market reactions and bond yield increases. The U.S. housing market continues to struggle with affordability issues, exacerbated by high land and construction costs in metropolitan areas. These conditions are impacting housing stocks and the construction industry, with builders facing pressure from increased costs and reduced margins. The political dynamics in Congress post-election may also influence future mortgage rates and housing policies.