SCMP Economy3 hours agoBusiness1 min readChina

US mortgage rates exceed 7.0%, highest since Trump's return to presidency

Quick Look

US mortgage rates have exceeded 7.0 per cent, reaching their highest level since Donald Trump returned to the presidency, with the 30-year fixed-rate mortgage averaging 7.03 per cent as of Thursday, up from 6.30 per cent a year ago, according to Freddie Mac data, as voters grapple with high costs of living ahead of midterm elections.

AI-generated summary

Why It Matters

Mortgage rates have been rising amid persistent inflation concerns and Federal Reserve monetary policy tightening, impacting housing affordability for US households.

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US mortgage rates have exceeded 7.0 per cent, data showed Thursday, reaching their highest level since Donald Trump returned to the presidency as voters grapple with high costs of living ahead of midterm elections.

The popular 30-year fixed-rate mortgage averaged 7.03 per cent as of Thursday, a stark uptick from 6.30 per cent the same period a year ago.

This is the highest average level since January 16 last year, just days before Trump returned to the White House, according to data from mortgage finance giant Freddie Mac.

Affordability is a major concern for US voters just weeks before key midterm elections in November.

What to Watch

AI outlook — possibilities, not facts

Mortgage rates may remain elevated or rise further if inflation persists and the Federal Reserve maintains a restrictive monetary policy stance.
Likely · Within weeks

Open Questions

How will the Federal Reserve respond to continued inflation pressures in light of rising mortgage rates?
What impact will higher mortgage rates have on home sales and construction activity in the coming months?
Are voters likely to prioritize economic concerns over other issues in the upcoming midterm elections due to cost-of-living pressures?