Following Donald Trump’s election win, bond yields surged significantly. Experts believe this “Trump trade” will likely push home loan rates upward, regardless of the Federal Reserve’s decision on Thursday regarding a potential interest rate cut.

This suggests that those intending to purchase a home or secure a better refinancing rate should take action quickly over the next few weeks before rates potentially rise for an extended period.

According to Danielle Hale, chief economist for Realtor.com, “Current trends indicate that investors are bracing for either heightened inflation or robust economic growth. In the short term, it’s reasonable to expect mortgage rates to increase.”

When the Fed reveals its decision, most economists anticipate a reduction of 25 basis points. Typically, mortgage rates align with this benchmark rate—but that’s not been the case lately. After the Fed’s 50 basis point cut in September, the average 30-year fixed mortgage rate jumped from 6.20% to over 6.72% last week, as reported by Freddie Mac. The latest rates will be disclosed on Thursday morning.

What will mortgage rates do after the election?

According to Lisa Sturtevant, Chief Economist at Bright MLS, rates are unlikely to decline soon.

Sturtevant explained, “Trump’s economic policies are expected to cause unpredictable rises in mortgage rates throughout the rest of this year and into 2025. Investors are anticipating these policies will expand the federal deficit and complicate inflation control.”

Economists and investors are concerned that Trump’s policies may increase inflation, as tax reductions may necessitate more government borrowing, according to Sturtevant. This could lead to higher payouts needed to attract investors. Furthermore, tariffs on imports are likely to raise costs.

“A reversal in the recent declining inflation trend could hinder the Federal Reserve’s ability to cut rates,” Sturtevant added. “If the Fed hesitates to lower rates, mortgage rates might stay elevated for a longer duration.”

Is now the time to secure a lower rate?

Nina Gidwaney, who leads refinance and home equity at Chase Home Lending, states that it is “virtually impossible” for consumers to perfectly time the market. “We believe the market has already adjusted to a 25-basis point fed rate cut, which is reflected in the current mortgage rates,” she commented.

However, Hale suggests that buyers looking to secure a lower mortgage rate may have a brief opportunity in the coming weeks if recent market fluctuations stabilize. “The market often reacts too strongly to news, and I suspect some of the current changes could be overreactions,” she told YSL News.

For homebuyers, the remaining weeks of the year may present some potential, Hale mentioned. Inventory for homes for sale has been rising continuously over the last several months, hitting the highest level seen since the pandemic began in October, according to Realtor.com statistics. Prices also tend to slightly decrease in the fall; currently, the median listed home price is the same as it was last year at $424,950.

However, Sturtevant cautions, “The housing market was just starting to achieve greater equilibrium after the significant disruptions caused by the COVID-19 pandemic. The upcoming months could pose challenges for new homebuyers.”

This article has been updated to clarify that Nina Gidwaney is the head of refinance and home equity at Chase Home Lending.