President-elect Donald Trump's victory spurred a rise in the U.S. 10-year Treasury yield, causing mortgage rates to climb. The average rate on the 30-year fixed mortgage surged 9 basis points to 7.13%, marking the highest rate since July 1 of this year.
This increase in mortgage rates directly impacts housing affordability, making monthly payments higher for potential homebuyers. For example, a $400,000 home with a 20% down payment would see a monthly payment increase of $216 compared to early September.
Housing stocks reacted negatively, with PulteGroup falling more than 4% in midday trading. This demonstrates the high sensitivity of homebuilder stocks to fluctuations in mortgage rates and inflation expectations.
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