{"id":122904,"date":"2024-11-07T01:20:56","date_gmt":"2024-11-06T18:20:56","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=122904"},"modified":"2024-11-07T01:20:56","modified_gmt":"2024-11-06T18:20:56","slug":"mortgage-rates-surge-on-trump-victory-housing-stocks-to-fall","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=122904","title":{"rendered":"Mortgage rates surge on Trump victory, housing stocks to fall"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107349941\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Homes in the south suburban Chicago area on April 26, 2023.<\/p>\n<p>Brian Cassella | Tribune News Service | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><a href=\"https:\/\/www.cnbc.com\/2024\/11\/06\/trump-live-updates-markets-and-world-leaders-react-to-americas-president-elect.html\">President-elect Donald Trump&#8217;s victory<\/a> spurred a <a href=\"https:\/\/www.cnbc.com\/2024\/11\/05\/us-treasury-yields-as-traders-await-results-of-presidential-race.html\">rise in in the U.S. 10-year Treasury yield<\/a>. Mortgage rates, which loosely follow the benchmark yield, are also climbing.<\/p>\n<p>The average rate on the 30-year fixed mortgage surged 9 basis points Wednesday to 7.13%, according to Mortgage News Daily. That is the highest rate since July 1 of this year, though not quite the surge some had expected.<\/p>\n<p>&#8220;The expectation among bond traders coming into the election was that\u00a0rates would move higher in the event of a Trump victory and especially a red sweep.\u00a0While the latter is not yet clear, the former is enough for another bump to rates that have already risen abruptly with Trump&#8217;s victory odds,&#8221; said Matthew Graham, chief operating officer at Mortgage News Daily.<\/p>\n<p>Housing stocks reacted in turn, with both the big public builders and building material companies falling sharply. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><a href=\"https:\/\/www.cnbc.com\/quotes\/LEN\/\">Lennar,<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\"><a href=\"https:\/\/www.cnbc.com\/quotes\/DHI\/\">D.R. Horton<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-5\"><a href=\"https:\/\/www.cnbc.com\/quotes\/PHM\/\">PulteGroup<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> were all down roughly 5% in midday trading Wednesday. Retailers <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-6\"><a href=\"https:\/\/www.cnbc.com\/quotes\/HD\/\">Home Depot<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-7\"><a href=\"https:\/\/www.cnbc.com\/quotes\/LOW\/\">Lowe&#8217;s<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> were also down, about 3% apiece.<\/p>\n<p>&#8220;The builder stocks are highly sensitive to mortgage rates and mortgage rate expectations. Inflation expectations are higher now, which impacts long-term rates,&#8221; said John Burns, CEO of John Burns Real Estate Consulting.<\/p>\n<p>While Trump did not lay out a detailed housing plan, he did talk about deregulation and opening federal land for more home construction.<\/p>\n<p>The National Association of Home Builders congratulated the president-elect with a statement from its chairman, Carl Harris, saying, &#8220;NAHB looks forward to working with the incoming Trump administration and leaders in Congress from both parties to enact a pro-housing legislative and regulatory agenda that increases the nation&#8217;s housing supply and eases the nation&#8217;s affordability woes.&#8221;<\/p>\n<p>Big builders have been buying down mortgage rates for their customers, but that has been cutting into their margins.<\/p>\n<p>Mortgage rates hit a recent low of 6.11% on September 11, but have been rising steadily since, despite the recent rate cut by the Federal Reserve. Mortgage rates don&#8217;t follow the Fed, but do react to the Fed&#8217;s thinking on the economy. Stronger-than-expected economic reports in September and October caused bond yields, and consequently mortgage rates, to move higher.<\/p>\n<p>To put it in perspective for consumers, a homebuyer purchasing a $400,000 home with a 20% down payment on a 30-year fixed mortgage, would have had a monthly payment of $1,941 in early September. Today that payment would be $2,157, a difference of $216.<\/p>\n<p>Sales of existing homes have seen an unusual surge this fall. Pending sales, which represent signed contracts, rose 7% in September compared with August, according to the National Association of Realtors. That was before rates surged significantly higher.<\/p>\n<p>The sales increase is largely due to more supply. There were 29.2% more homes actively for sale in October compared to October 2023, reaching the highest level of active inventory since December 2019, according to Realtor.com.<\/p>\n<p>&#8220;The path ahead is anyone&#8217;s guess and will ultimately be determined by inflation, the economy, and Treasury issuance,&#8221; Graham added.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2024\/11\/06\/mortgage-rates-surge-on-trump-victory-housing-stocks-to-plummet.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Homes in the south suburban Chicago area on April 26, 2023. Brian Cassella | Tribune News Service | Getty Images President-elect Donald Trump&#8217;s victory spurred a rise in in the &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=122904\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-122904","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/122904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=122904"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/122904\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=122904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=122904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=122904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}