Fed lowers key lending rate, but hints at stubborn inflation pressures
The Fed delivered its second consecutive rate cut Thursday, but all eyes now shift to its growth and inflation forecasts for 2025 and beyond.
The Fed delivered its second consecutive rate cut Thursday, but all eyes now shift to its growth and inflation forecasts for 2025 and beyond.
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 climbed to 6.79%, the highest level since July, from 6.72% last week, mortgage finance agency Freddie Mac said on Thursday. As supply remains below pre-pandemic levels, rising mortgage rates and elevated house prices have combined to stifle sales of previously owned homes, which hit a 14-year low in September.
Rising U.S. Treasury yields and a strengthening in the value of the dollar in the wake of Donald Trump's return to the White House are threatening to counteract the Federal Reserve's efforts to lower interest rates. The Federal Reserve is expected to cut its benchmark interest rate by 25 basis points on Thursday, marking a back-to-back reduction and bringing the policy rate to a range of 4.5%-4.75%, the lowest since February 2023. The bond market appears less influenced by the Fed's dovish stanc
Voters unhappy over soaring prices, including runaway housing costs, helped put Donald Trump back in the White House. But what will a second Trump presidency mean for home buyers and sellers?
Stocks had their best post-election rally on record Tuesday. It might not last.
Will the Federal Reserve pour cold water on the rally? The Fed’s monetary-policy meeting ends on Thursday and while its decision is not in doubt, the market will be watching carefully for whether the central bank introduces any note of caution into its rate-cutting plans after Trump’s win. Dow Jones Industrial Average futures were up 37 points, or 0.1%.
The Treasury market, arguably the world’s financial backbone, is seeing yields erupt higher as investors respond to the big shifts that could come from a second Donald Trump presidency. “Safe bonds are getting punched in the face” today, Hunter Hayes, CIO of Intrepid Capital Management, told Barron’s. Central banks from Japan to India, pension funds, and hedge funds rely on the U.S. government debt for safety and returns.
Mortgage rates rose Wednesday morning as the financial markets reacted to Republican nominee Donald Trump winning the presidential election.
The rise in U.S. government bond yields is sharpening after Donald Trump’s election victory. The yield on the benchmark 10-year Treasury note stood at 4.468% early on Wednesday. The 30-year Treasury yield climbed to 4.
Trump has vowed to impose sweeping tariffs on Mexico and other trading partners.