By WASHINGTON (Reuters) – U.S. mortgage rates increased to a four-month high this week and could rise further amid fears that President-elect Donald Trump’s proposed economic policies could stoke inflation.
The average rate on the popular 30-year fixed-rate mortgage increased to 6.79%, the highest level since July 2024, from 6.72% last week, mortgage finance agency Freddie Mac (OTC:FMCC) said on Thursday. It averaged 7.50% during the same period a year ago.
The 30-year fixed mortgage rate tracks the benchmark 10-year Treasury note, whose yield jumped to a four-month high in the aftermath of Republican Trump’s victory in the U.S. presidential race. Trump campaigned on a platform of tax cuts, which economists say would juice the economy, widen budget deficits and increase government borrowing.
He also promised to impose a 60% tariff on Chinese goods and at least a 10% levy on all other imports, which economists expect to re-ignite inflation and reduce the Federal Reserve’s scope to cut interest rates.