Fed Rate Cuts Fail to Lower Mortgage Rates Amid Market Uncertainty

Mortgage rates in the U.S. are expected to remain above 6% for the foreseeable future, influenced by strong economic growth and uncertainty surrounding President-elect Trump's economic policies. Despite the Federal Reserve's efforts to lower interest rates, mortgage rates are more closely tied to government bond demand, which has weakened. This has led to a slowdown in the housing market, with existing home sales hitting a 14-year low. The "lock-in" effect is keeping current homeowners from selling due to their lower mortgage rates, while potential buyers face high costs and limited inventory.