### Mortgage Rates Hold Steady Amid Election-Induced Uncertainty

The average 30-year fixed-rate mortgage in the U.S. experienced a slight decrease to 6.78% for the week ending November 14, down from 6.79% the week before, according to data from Freddie Mac via the Federal Reserve. Experts suggest this stabilization could be a hopeful sign for the housing market. Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, highlighted that stability in mortgage rates reduces market uncertainty, which benefits homebuyers.

The minor drop in rates comes after a turbulent period this fall, when mortgage rates initially fell in anticipation of the first interest rate cuts since March 2020. However, rates spiked recently as markets reacted to Donald Trump's election victory. Despite the president-elect's pledges to reduce mortgage costs, experts clarify that presidential powers do not directly control home loan borrowing costs, which are more closely tied to Treasury yields and the federal funds rate.

James Tobin, president and CEO of the National Association of Home Builders, noted that market reactions to anticipated inflationary policies under the new administration have contributed to the recent rate increases. Bond market changes and future monetary policy decisions by the Federal Reserve will likely continue to influence mortgage rates. As of now, the Fed has indicated that it will take a measured approach to future rate cuts, potentially adding downward pressure on mortgage rates but not without the possibility of counteracting factors like increased government deficits.

While experts predict that mortgage rates might face a bumpy path over the coming year, Chen Zhao, chief economist at Redfin, pointed out that less volatility itself is positive. Stable mortgage rates mean that homebuyers can budget more accurately during their home search. Lautz expects rates to remain in the 6% range as we move into 2025, offering potential opportunities for current homeowners to refinance if they purchased their homes when rates were higher.

Additionally, U.S. homeowners have seen a substantial increase in home equity, reaching over $17.6 trillion in the second quarter of 2024, according to data from CoreLogic. This growth in equity, coupled with the slightly lower mortgage rates, could allow homeowners to make larger down payments on new properties, thereby offsetting higher borrowing costs.

Overall, while mortgage rates are expected to remain in the 6% range, the current stability and slight dip may offer some relief to homebuyers and homeowners alike.