If you’re diving into the real estate market in Walnut Creek, the East Bay, or anywhere in California, you might be wondering, “Will mortgage rates go down with the new Trump administration?” It’s a common question, especially when buying a home is one of the biggest financial decisions you’ll make.

Does the President Control Mortgage Rates?

The short answer is: not directly. While the president can influence economic policies, mortgage interest rates are mostly controlled by the Federal Reserve and the bond market. The Fed sets the federal funds rate, which influences lending rates to banks, but mortgage rates don’t move exactly in step with those changes. Instead, mortgage rates are more closely tied to the bond market’s fluctuations.

What About the Fed Cutting Rates?

Some buyers hope the Federal Reserve will cut interest rates, which might lower mortgage costs. However, it’s important to note that when the Fed last cut rates, mortgage rates actually went up. This counterintuitive trend happens because many factors, including inflation and investor confidence, affect mortgage rates.

Since inflation has remained high, especially in recent months, the Fed may be less likely to reduce rates anytime soon. That means credit card interest, loans, and mortgages could stay higher for a while, impacting real estate affordability in Walnut Creek and across California.

What Should Walnut Creek Buyers Do?

If you’re looking at buying a home in the East Bay or Walnut Creek, don’t rely solely on the hope of lower mortgage rates. Instead, focus on getting pre-approved, exploring your loan options, and working with lenders who understand the current market. Locking in a rate now might be smarter than waiting for uncertain changes.

Need More Answers or Ready to Get Started?

Understanding mortgage rates in today’s economic climate can be tricky. If you want more insights or are ready to explore financing options for your next home in Walnut Creek or the East Bay, reach out to us at Ask Brendan. We’re here to guide you through every step of your California real estate journey.