Federal Reserve Chair Jerome Powell reacts to a question about serving past his term from moderator Catherine Rampell during an event in Music Hall at Fair Park Thursday, Nov. 14, 2024, in Dallas. target by three-quarters of a percentage point since mid-September, 30-year fixed-rate home mortgage rates rose by almost as much during that period and have lately averaged around 6.
“It’s a huge frustration for all the folks that were excited to jump in and buy homes, once the Feds started cutting interest rates,” she added. “Buyers are returning” since Trump’s election, yet “we don’t expect rates to fall significantly anytime soon,” said Redfin economic researcher Chen Zhao. Analysts say high mortgage rates reflect, in part, expectations that inflation would increase next year — for example, if the Trump administration makes good on promises to cut taxes without corresponding cuts to the major categories of U.S. government spending: medical, Social Security, military and debt service.