**Mortgage Rates Rise After Trump Victory, Housing Hit**

CNAES

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Post on Nov 07, 2024

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Mortgage Rates Soar After Trump Win, Housing Takes a Hit

The real estate market is feeling the aftershocks of the 2016 presidential election. Mortgage rates took a nosedive after Donald Trump's victory, sending shivers down the spines of homebuyers and sellers alike.

What happened? Well, it's a bit of a tangled web. Trump's win sparked a wave of uncertainty in the financial markets. Investors, worried about potential policy changes, started pouring money into safe haven assets like US Treasury bonds. This drove down bond yields, and you guessed it, mortgage rates followed suit.

Think of it this way: Mortgage rates are closely linked to bond yields. When bond yields go up, mortgage rates generally follow suit. But when bond yields go down, mortgage rates usually plummet.

The impact on housing: The sudden jump in mortgage rates put a damper on the housing market. Potential buyers, faced with higher borrowing costs, suddenly found themselves with less buying power. This led to a slowdown in sales and price growth, leaving some sellers scrambling.

Here's the thing: While the initial reaction was a bit chaotic, the long-term impact on the housing market remains to be seen. Experts are divided on whether this will be a temporary blip or a more significant shift in the market.

For now, homebuyers and sellers are in a state of limbo. Some are waiting on the sidelines, hoping for a more stable market. Others are trying to make the most of the situation, adjusting their expectations and strategies.

One thing's for sure: The housing market is a complex beast, and its future depends on a multitude of factors. This recent surge in mortgage rates is just one piece of the puzzle, and it's important to stay informed and adapt to the changing landscape.