Trump’s win, and the expected fiscal stimulus that it will generate, has led to a sharp rise in 10-year Treasury yields. In turn, the 30-year fixed mortgage rate has increased to its highest level since June 2015. (See Chart.) That has boosted mortgage applications for home purchase, as buyers rush to beat expected further rate increases. Longer term, the boost to growth from the stimulus will help off-set the impact of higher interest rates on home sales.
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