Trump Victory Pushes Mortgage Rates Upward

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Post on Nov 07, 2024

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Trump's Win Sent Mortgage Rates Skyrocketing!

Remember that wild election night in 2016? The one where Trump pulled off a surprise victory? Well, besides the political shockwaves, it also sent mortgage rates on a roller coaster ride! It was wild, man.

So what happened? Well, investors got spooked. They thought a Trump presidency would mean more inflation, bigger deficits, and less certainty. These worries made them want to dump riskier investments (like bonds) and go for something safer, like... cash!

When everyone's selling bonds, their prices go down. And when bond prices go down, interest rates go up. It's just how it works, folks. And guess what? Mortgage rates are tied to bond yields. So, when bond yields go up, so do mortgage rates.

The result? People who were planning to buy a home in the next few months found themselves facing higher monthly payments. Some even had to put their home-buying dreams on hold. It was a bummer, man.

The Trump presidency definitely had a major impact on the housing market. It wasn't just mortgage rates, either. It affected everything from building permits to home prices.

But hey, that's the market for ya. It's always changing and always surprising us. So, if you're thinking of buying a home, make sure you're prepared for anything. Talk to a mortgage lender, get pre-approved, and keep an eye on those interest rates.

Remember, the market's a wild ride, but it's a ride worth taking. Just make sure you're strapped in!