Trump Administration Faces Challenges Over Rising Treasury Yields and Housing Affordability

Efforts to lower borrowing costs are complicated by economic uncertainty, fiscal policies, and persistent inflation pressures.

The Trump administration is prioritizing reducing 10-year Treasury yields to address high borrowing costs for consumers, particularly in the housing market.
Despite Federal Reserve rate cuts in late 2024, 10-year Treasury yields have risen, contributing to mortgage rates that remain near 7%, limiting housing affordability.
Experts cite economic uncertainty, inflation concerns, and fiscal policies, such as proposed tariffs and tax cuts, as drivers of stubbornly high yields.
Treasury Secretary Scott Bessent emphasized the administration's focus on achieving non-inflationary growth while fostering innovation in digital financial technologies like blockchain and stablecoins.
Economists warn that prolonged high yields could slow economic growth, increase consumer financial strain, and make historically low mortgage rates unlikely to return.