“Be decisive. Right or wrong, make a decision. The road is paved with flat squirrels who couldn’t make a decision.” Potential borrowers wonder why mortgage rates haven’t “decided” to go down. Money is apolitical, and U.S. News reports, “Long before President Donald Trump regained control of the White House, he said on the campaign trail that he would drive down mortgage rates to 2% ‘by quickly defeating inflation.’ However, his policy proposals focusing on tariffs are more likely to rekindle inflation, while tax cuts are expected to increase the federal deficit, all of which could keep rates higher for longer. President Trump’s economic agenda could have a downstream impact on mortgage rates. Generally, the expert consensus points to higher rates as a result of Trump administration policy proposals. Research shows that tariffs tend to have an inflationary effect, potentially leading to higher mortgage rates and increased homebuilding costs. Bond pricing, and thus mortgage rates, are influenced in part by fiscal policy. Some of Trump’s proposed tax plans could increase the U.S. government’s debt burden and keep long-term interest rates elevated.” Time will tell! (Today’s podcast can be found here and this week’s is sponsored by Lender Toolkit’s new Prism. Experience a quantum leap in accuracy and efficiency as you streamline workflows, reduce errors, and close loans faster. Prism’s advanced OCR boasts 99 percent accuracy across 1,450+ document types. Effortlessly index, analyze, and underwrite crucial data with their intelligent system. Today’s has an interview with Angel Oak’s Tom Hutchens on demand in the non-QM space from both borrowers and investors.)