Experts say mortgage rates will stay high as Trump inflation fears negate expected Fed cut
Briefly

Mark T. Williams states, "Unfortunately consumers will not feel needed relief as the yield on the bellwether 10-year treasury, post-election, has leaped to almost 4.5%... higher mortgage rates will also reduce the amount of homes on the market." This indicates that while interest rate cuts may occur, the impact on consumer borrowing and mortgage rates might still be negative.
Peter Ricchiuti mentions, "The bond markets have been betting on a Trump win for about the last six weeks... the yield on the 10-year Treasury has soared over this time mainly because tariffs are inflationary." This highlights the market's anticipation of political outcomes influencing economic conditions.
Williams also remarked on the post-election market dynamics, stating, "The sizable post-election spike in yields is driven by concerns that Trump policies including tax cuts and deficit spending will push inflation back up." This reflects broader concerns regarding fiscal policy and inflation.
The article outlines how inflation peaked at 9.1% in June 2022 and subsequently fell to 2.1% in September, showing that the Fed's previous interventions have been somewhat effective but that future economic stability remains uncertain.
Read at Fortune
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