As Trump’s victory over Democratic candidate Vice President Kamala Harris became apparent on Wednesday, bond markets reacted sharply. The benchmark 10-year Treasury yield jumped to 4.479%, its highest level since July, according to news reports. Mortgage rates responded in kind, with the average 30-year fixed rate rising to 7.13% on Wednesday, up nine basis points from the day prior, according to rate data from Mortgage News Daily.
Investors offloaded U.S. Treasuries in anticipation that Trump’s proposal for higher tariffs on imports will eventually push consumer prices—and consequently, inflation—higher.
Americans should expect more of the same market volatility and affordability challenges in the housing market as Trump takes office, Lisa Sturtevant, chief economist with Bright MLS, said in a statement.
