Mortgage Rates Fell, Then Rose. What Comes Next?

Published On Nov 11, 2024, 5:03 AM

Recent trends indicate that mortgage rates, which had been declining earlier this year, have sharply risen to 6.79% from around 6.1% a month ago. This unexpected spike has led to confusion among potential home buyers who were anticipating further reductions in borrowing costs. The movement in mortgage rates is linked to the Federal Reserve's interest rate cuts, but while those cuts were expected to ease mortgage costs, the opposite has happened recently, complicating the housing market outlook.

Read full article

Stock Forecasts

XHBView XHB chart on TradingView

Negative

The housing market may struggle due to rising mortgage rates hindering prospective buyers' ability to purchase homes. This could negatively affect homebuilder stocks as demand softens alongside affordability issues in the housing market. Investors should consider monitoring the homebuilding sector for potential declines.

Related News

Trump says deportations will lower housing costs. The reality is complicated.

Nov 9, 2024, 7:40 AM

Donald Trump has blamed the housing crisis on immigration, but experts say the relationship between rising immigration and surging housing costs isn’t so clear.

XHB

Federal Reserve cuts interest rates by 25 basis points

Nov 7, 2024, 2:02 PM

The Fed cut interest rates by 25 basis points, avoiding any surprises just days after the election of Donald Trump as the next US president.

XHB
JPM

If the Fed Is Cutting Rates, Why Are Mortgage Rates Rising?

Nov 7, 2024, 12:05 PM

The latest rise, to 6.79% for a 30-year mortgage, reflects bond market concern about President-elect Trump’s agenda. It extends an uptick in mortgage rates despite expected Federal Reserve rate cuts.

XHB