Mortgage loans in the USA have 30-year terms and interest rates normally follow long-term market rates up and down.
Mortgage interest rates in the USA have been pushed up rapidly in recent weeks. The pressure has been created by unexpectedly strong signals from the USA's economy – including last week's job figures – and rapidly decreasing expectations of the USA's central bank, the Federal Reserve (Fed), cutting interest rates further.
A widespread concern that incoming Donald Trump's economic policy – including tax cuts, deregulation, and deportations of foreign citizens – will fuel inflation has contributed to the interest rate market's reaction.
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