Trump Calls for Lower Interest Rates Amid Rising Mortgage Costs
The Federal Reserve raised its benchmark interest rate by a quarter-point to between 3.75% and 4.00%, but President Trump thinks it should be even lower.
In an interview, Trump stated that interest rates should be around 1% or less. However, the current mortgage rates have increased significantly, with the average long-term U.S. mortgage rate jumping to its highest level in nearly three years at 7.28%.
This is the sixth consecutive week of rising mortgage rates, which has added hundreds of dollars a month to borrowers' costs. According to Sam Khater, chief economist for Freddie Mac, this increase from the late-February low has been estimated to add about $276 a month to payments on a $400,000 mortgage.
The 30-year fixed-rate mortgage rate has climbed significantly since last year, with a year ago average rate being 6.34%. This surge in rates is attributed to inflation and Federal Reserve policy, among other factors.