Trump Calls for Lower Interest Rates as Mortgage Rates Reach Three-Year High

The Federal Reserve has raised its benchmark interest rate by a quarter-point to 3.75% to 4.00%, but President Trump believes it should be lower, at or below 1%. This decision is significant for borrowers as higher interest rates can increase monthly payments on mortgages.

According to Freddie Mac, the average long-term U.S. mortgage rate has jumped this week to its highest level in nearly three years, reaching 7.28% from 7.03%, a four-year high. This is the sixth consecutive week that mortgage rates have increased.

A year ago, the average rate was 6.34%. The increase can add hundreds of dollars a month to borrowers' costs, limiting homebuyers' purchasing power and potentially leading them to delay buying.