Trump says Fed 'seems to want the country to do badly' as home loan costs spike

A home listed for sale in the Brooklyn borough of New York. [Getty Images]
A home listed for sale in the Brooklyn borough of New York. [Getty Images]

The average rate on a 30-year fixed mortgage in the United States has risen to its highest level in three years as US Treasury yields climb, Reuters reported Wednesday (local time).

The Mortgage Bankers Association said the average 30-year fixed mortgage rate rose 0.19 percentage points to 7.49% for the week ending Friday — the highest since November 2023.

A separate survey by government-backed lender Freddie Mac also showed the 30-year fixed rate reaching 7.28% as of Thursday, the highest since October 2023 and nearly 1 percentage point above the 6.34% recorded a year earlier.

Mortgage rates move closely in tandem with the 10-year US Treasury yield, which climbed to an intraday high of 5.366% on Wednesday — a new year-to-date peak — before closing at 5.286%, driven by inflation concerns stemming from a sharp rise in oil prices and resilient economic data.

With midterm elections next month and the cost of living emerging as the central issue, demand for home loans has weakened further, eroding affordability. Mortgage applications fell 4.2% last week from the prior week, hitting their lowest level since February 2025, with refinancing applications posting a particularly steep decline.

"At this rate level, there are very few homeowners who have an incentive to refinance," said Joel Kan, deputy chief economist at the MBA. "The surge in borrowing costs has pushed many potential buyers out of the purchase market."

Asked about mortgage rates by a reporter that day, President Donald Trump said, "I think the board is — they seem to want the country to do badly. Our interest rates should be the lowest."

Treasury Secretary Scott Bessent, who was present at the briefing, attributed the elevated rates to a temporary shock from rising oil prices, saying, "Once we get past the Iran conflict, energy supply will be sufficient and mortgage rates and the 10-year yield will come back down."


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