{"id":6567,"date":"2026-10-07T19:42:02","date_gmt":"2026-10-08T02:42:02","guid":{"rendered":"https:\/\/abovecloud.xyz\/?p=6567"},"modified":"2026-10-07T19:45:44","modified_gmt":"2026-10-08T02:45:44","slug":"how-rising-mortgage-rates-are-hitting-the-housing-market-hard-at-a-terrible-time-for-gop","status":"publish","type":"post","link":"https:\/\/abovecloud.xyz\/?p=6567","title":{"rendered":"How rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP"},"content":{"rendered":"
\n
\n \t<\/i> Read Time:<\/span>4 Minute, 59 Second <\/div>\n\n <\/div>\n

Rising mortgage rates are lowering the odds of prospective homebuyers entering the market and adding to the tough economic slate for President Trump and the GOP just weeks ahead of the midterms.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The average 30-year fixed mortgage rate was 7.28 percent last week \u2014 the highest mark since late November 2023, according to data from Freddie Mac. The average rate also rose by a quarter point from the week prior, the largest week to week increase in four-plus years.<\/p>\n\n\n\n

Rising mortgage rates are part of a rough financial ledger for Trump and Republicans, as inflation remains above 3 percent and fuel prices stay high amid the Iran war.<\/p>\n\n\n\n

\u201cEconomy, cost of living, that kind of congealing will be [important], certainly it has been for the last \u2026 two years, for voters in \u201926,\u201d GOP strategist Matt Gorman told The Hill.<\/p>\n\n\n\n

Experts point to multiple factors as to why mortgage rates have shot up above 7 percent. Lawrence Yun, the chief economist at the National Association of Realtors (NAR), noted increased energy prices during the Iran conflict have pushed up inflation.<\/p>\n\n\n\n

Annual inflation, as measured by the personal consumption expenditures price index, has surged from 2.8 percent in February to 3.4 percent in August, according to data from the Bureau of Economic Analysis.<\/p>\n\n\n\n

The upticks in prices track with rising mortgage rates. The average 30-year rate, after sinking by 28 basis points from the week before Thanksgiving 2025 to late February 2026, has risen by nearly 1.3 percentage points since the week before the U.S. and Israel launched the Iran war.<\/p>\n\n\n\n

Persistent inflation led to the Federal Reserve hiking interest rates by a quarter point last month. But the federal funds rate, which dictates what rates banks charge for overnight loans, does not directly impact mortgage rates.<\/p>\n\n\n\n

Ali Wolf, the chief economist at Zonda and NewHomeSource, told The Hill that bond investors \u201calready allocate their money accordingly\u201d prior to a rate hike, with mortgage rates rising or falling as market participants anticipate the Fed\u2019s next move.<\/p>\n\n\n\n

Inflation, and how Fed officials address it, are not the only factors impacting mortgage rates.<\/p>\n\n\n\n

Wolf highlighted investor concerns over government debt, which has led to a bond market sell-off and subsequent increases in yields.<\/p>\n\n\n\n

The 10-year U.S. Treasury bond yield, which the 30-year mortgage rate tracks closely, hit a 24-year high last week and is still trading at more than 5.25 percent \u2014 an increase of roughly 130 basis points from before the Iran war started.<\/p>\n\n\n\n

\u201cMoreover, the huge rising federal budget deficit is gobbling up more of private savings and thereby leaving less capital for the mortgage market,\u201d Yun, of the NAR, noted via email.<\/p>\n\n\n\n

While the average 30-year mortgage rate sank below 3 percent during the pandemic, it has been above 5 percent since mid-August 2022.<\/p>\n\n\n\n

During his last presidential campaign, Trump vowed to lower mortgage rates, predicting they would fall to 3 percent during his second administration.<\/p>\n\n\n\n

\u201cYoung people will be able to buy a home again and be a part of the American Dream,\u201d the president said in September 2024 at The Economic Club of New York.<\/p>\n\n\n\n

At various points of his second term, Trump has centered housing policy in his economic agenda.<\/p>\n\n\n\n

The president in January signed an executive order aimed at preventing Wall Street investors from purchasing single-family homes, although experts cautioned doing so would not greatly boost supply.<\/p>\n\n\n\n

Trump also proposed \u2014 and then backed down from \u2014 the 50-year mortgage last year. The proposal would come with higher interest rates than the 30-year repayment plan.<\/p>\n\n\n\n

But when Congress earlier this year passed the bipartisan 21st Century ROAD to Housing Act, Trump did not sign it in protest of GOP senators declining to change the filibuster rules to pass voter ID legislation.<\/p>\n\n\n\n

The lengthy housing measure, which became law without Trump\u2019s signature in July, intends to streamline the federal review process for new units and bans institutional investors from buying single-family homes, with an exception for build-to-rent properties.<\/p>\n\n\n\n

The law will not lead to a decline in mortgage rates, however, Yun noted. While the law directs the Department of Housing and Urban Development to consider a pilot program for certain Federal Housing Association-backed mortgages, it is geared toward increasing housing supply to \u201clessen home price acceleration,\u201d he wrote.<\/p>\n\n\n\n

As for what will cause mortgage rates to decline in the short term, the NAR chief economist cited lower oil prices or a \u201cjob cutting economic recession.\u201d Over the long term, he said the federal government reining in the deficit \u201cto manageable levels\u201d would lower them.<\/p>\n\n\n\n

Until then, Wolf said the housing market is \u201calready feeling the impacts\u201d higher mortgage rates have on consumers.<\/p>\n\n\n\n

\u201cWhat we are telling our clients \u2026 is to expect these \u2018higher for longer\u2019 mortgage rates to hold,\u201d Wolf noted, adding that rates could be between 6.5 percent and 8 percent for the next 12 months.<\/p>\n\n\n\n

\u201cHomes are sitting on the market longer, sellers are having to reduce their asking price, and consumers are deciding now might not be the right time to buy a house,\u201d she said. \u201cFrom a consumer point of view, they are dealing with the mental toll of higher costs across the economy as well as the financial one.\u201d<\/p>\n\n\n\n

Rising mortgage rates are just part of the broader economic landscape heading into the midterms, giving Democrats a chance to capitalize on Americans\u2019 frustrations over high prices.<\/p>\n\n\n\n

Gorman, the GOP strategist and chief communications officer at Targeted Victory, said housing will likely be \u201cfront and center\u201d in the 2028 presidential race, arguing Democrats in Congress have \u201czero incentive\u201d to team up with their Republican colleagues on another housing measure.<\/p>\n\n\n\n

\u201cAnything they even think about passing will not be good enough \u2026 for the [Democratic] presidential candidates,\u201d Gorman told The Hill, adding he \u201ccertainly\u201d does not see \u201canything getting done\u201d on housing the next two years.

Reprinted from The Hill<\/p>\n

\n
\n \n
\n \n \"Happy\"\n <\/a>\n
\n Happy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sad\"\n <\/a>\n
\n Sad <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Excited\"\n <\/a>\n
\n Excited <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sleepy\"\n <\/a>\n
\n Sleepy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Angry\"\n <\/a>\n
Angry<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n \n <\/div>\n <\/div>\n\n
\n \n \"Surprise\"\n <\/a>\n
Surprise<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n\n ","protected":false},"excerpt":{"rendered":"

Rising mortgage rates are lowering the odds of prospect […]<\/p>\n","protected":false},"author":5,"featured_media":6568,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[4526,5206,5236],"class_list":["post-6567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-usa","tag-how","tag-mortgage","tag-rising"],"yoast_head":"\nHow rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP - abovecloud<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/abovecloud.xyz\/?p=6567\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP - abovecloud\" \/>\n<meta property=\"og:description\" content=\"Rising mortgage rates are lowering the odds of prospect […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/abovecloud.xyz\/?p=6567\" \/>\n<meta property=\"og:site_name\" content=\"abovecloud\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-08T02:42:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-10-08T02:45:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2026\/10\/36948d12cafc38dda2e192b3143ea545.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"795\" \/>\n\t<meta property=\"og:image:height\" content=\"445\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u4f5c\u8005\" \/>\n\t<meta name=\"twitter:data1\" content=\"CrapeMyrtle888\" \/>\n\t<meta name=\"twitter:label2\" content=\"\u9884\u8ba1\u9605\u8bfb\u65f6\u95f4\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 \u5206\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/abovecloud.xyz\/#website\",\"url\":\"https:\/\/abovecloud.xyz\/\",\"name\":\"abovecloud\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/abovecloud.xyz\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"zh-Hans\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"zh-Hans\",\"@id\":\"https:\/\/abovecloud.xyz\/?p=6567#primaryimage\",\"url\":\"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2026\/10\/36948d12cafc38dda2e192b3143ea545.jpg\",\"contentUrl\":\"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2026\/10\/36948d12cafc38dda2e192b3143ea545.jpg\",\"width\":795,\"height\":445},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/abovecloud.xyz\/?p=6567#webpage\",\"url\":\"https:\/\/abovecloud.xyz\/?p=6567\",\"name\":\"How rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP - abovecloud\",\"isPartOf\":{\"@id\":\"https:\/\/abovecloud.xyz\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/abovecloud.xyz\/?p=6567#primaryimage\"},\"datePublished\":\"2026-10-08T02:42:02+00:00\",\"dateModified\":\"2026-10-08T02:45:44+00:00\",\"author\":{\"@id\":\"https:\/\/abovecloud.xyz\/#\/schema\/person\/96ebd2d6dfd45e6b12ba731340efc174\"},\"breadcrumb\":{\"@id\":\"https:\/\/abovecloud.xyz\/?p=6567#breadcrumb\"},\"inLanguage\":\"zh-Hans\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/abovecloud.xyz\/?p=6567\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/abovecloud.xyz\/?p=6567#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u9996\u9875\",\"item\":\"https:\/\/abovecloud.xyz\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/abovecloud.xyz\/#\/schema\/person\/96ebd2d6dfd45e6b12ba731340efc174\",\"name\":\"CrapeMyrtle888\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"zh-Hans\",\"@id\":\"https:\/\/abovecloud.xyz\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/6ba8c6340f49e5053ee1d42c8f9b249987b4ccead633b2c0b701144523def435?s=96&d=wavatar&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/6ba8c6340f49e5053ee1d42c8f9b249987b4ccead633b2c0b701144523def435?s=96&d=wavatar&r=g\",\"caption\":\"CrapeMyrtle888\"},\"url\":\"https:\/\/abovecloud.xyz\/?author=5\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP - abovecloud","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/abovecloud.xyz\/?p=6567","og_locale":"zh_CN","og_type":"article","og_title":"How rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP - abovecloud","og_description":"Rising mortgage rates are lowering the odds of prospect […]","og_url":"https:\/\/abovecloud.xyz\/?p=6567","og_site_name":"abovecloud","article_published_time":"2026-10-08T02:42:02+00:00","article_modified_time":"2026-10-08T02:45:44+00:00","og_image":[{"width":795,"height":445,"url":"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2026\/10\/36948d12cafc38dda2e192b3143ea545.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"\u4f5c\u8005":"CrapeMyrtle888","\u9884\u8ba1\u9605\u8bfb\u65f6\u95f4":"5 \u5206"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/abovecloud.xyz\/#website","url":"https:\/\/abovecloud.xyz\/","name":"abovecloud","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/abovecloud.xyz\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"zh-Hans"},{"@type":"ImageObject","inLanguage":"zh-Hans","@id":"https:\/\/abovecloud.xyz\/?p=6567#primaryimage","url":"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2026\/10\/36948d12cafc38dda2e192b3143ea545.jpg","contentUrl":"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2026\/10\/36948d12cafc38dda2e192b3143ea545.jpg","width":795,"height":445},{"@type":"WebPage","@id":"https:\/\/abovecloud.xyz\/?p=6567#webpage","url":"https:\/\/abovecloud.xyz\/?p=6567","name":"How rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP - abovecloud","isPartOf":{"@id":"https:\/\/abovecloud.xyz\/#website"},"primaryImageOfPage":{"@id":"https:\/\/abovecloud.xyz\/?p=6567#primaryimage"},"datePublished":"2026-10-08T02:42:02+00:00","dateModified":"2026-10-08T02:45:44+00:00","author":{"@id":"https:\/\/abovecloud.xyz\/#\/schema\/person\/96ebd2d6dfd45e6b12ba731340efc174"},"breadcrumb":{"@id":"https:\/\/abovecloud.xyz\/?p=6567#breadcrumb"},"inLanguage":"zh-Hans","potentialAction":[{"@type":"ReadAction","target":["https:\/\/abovecloud.xyz\/?p=6567"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/abovecloud.xyz\/?p=6567#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u9996\u9875","item":"https:\/\/abovecloud.xyz\/"},{"@type":"ListItem","position":2,"name":"How rising mortgage rates are hitting the housing market hard \u2014 at a terrible time for GOP"}]},{"@type":"Person","@id":"https:\/\/abovecloud.xyz\/#\/schema\/person\/96ebd2d6dfd45e6b12ba731340efc174","name":"CrapeMyrtle888","image":{"@type":"ImageObject","inLanguage":"zh-Hans","@id":"https:\/\/abovecloud.xyz\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/6ba8c6340f49e5053ee1d42c8f9b249987b4ccead633b2c0b701144523def435?s=96&d=wavatar&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/6ba8c6340f49e5053ee1d42c8f9b249987b4ccead633b2c0b701144523def435?s=96&d=wavatar&r=g","caption":"CrapeMyrtle888"},"url":"https:\/\/abovecloud.xyz\/?author=5"}]}},"_links":{"self":[{"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=\/wp\/v2\/posts\/6567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6567"}],"version-history":[{"count":1,"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=\/wp\/v2\/posts\/6567\/revisions"}],"predecessor-version":[{"id":6569,"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=\/wp\/v2\/posts\/6567\/revisions\/6569"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=\/wp\/v2\/media\/6568"}],"wp:attachment":[{"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abovecloud.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}