President-elect Donald Trump's slate of Cabinet picks has sent financial markets into a tizzy, with mortgage rates showing only minor changes this week. The average 30-year mortgage rate, which was 6.84% a week earlier, dropped slightly to 6.81% in the latest week. This marks four consecutive weeks of rates hovering around the 6.8% area. Meanwhile, the 15-year mortgage rate rose to 6.1% from 6.02% the previous week.

Waiting for Economic Policy Clarity

Sam Khater, Freddie Mac's chief economist, noted that rates have been relatively flat over the past few weeks as the market awaits more clarity on specific economic policies. Ten-year Treasury yields, which closely track mortgage rates, initially moved sharply lower earlier this week after Trump selected hedge fund manager Scott Bessent to lead the Treasury Department. Bessent's connections on Wall Street and his criticism of the federal deficit are seen as potentially moderating forces against some of Trump's economic policy ideas. However, yields have been highly volatile. They rose on Tuesday after Trump pledged to impose tariffs on goods imported from Mexico, Canada, and China on his first day in office, only to fall back to pre-election levels on Wednesday morning. Policies like tariffs and tax cuts are widely regarded as inflationary and would require interest rates to remain higher for an extended period to prevent overheating the economy.

Resilient Housing Market Activity

Despite mortgage rates rising from as low as 6.1% in late September, the housing market activity has remained somewhat resilient. Pending home sales, a measure of housing contract activity related to existing homes, saw a 2% jump in October compared to the previous month. Mortgage applications also showed an upward trend last week. This indicates that the housing market is continuing to perform well, even in the face of changing interest rate conditions.

Impact on Homebuyers and Investors

For homebuyers, the stability and fluctuations in mortgage rates play a crucial role in their purchasing decisions. With rates hovering around 6.8%, it presents both opportunities and challenges. On one hand, those looking to buy a home may find it slightly more affordable compared to earlier months. On the other hand, the uncertainty surrounding economic policies and interest rate movements can make them hesitant to make a big financial commitment. For investors, keeping an eye on mortgage rates and housing market trends is essential for making informed investment decisions. Real estate remains a popular investment option, and understanding how mortgage rates affect the market can help investors maximize their returns.

Yahoo Finance's Coverage

Claire Boston, a senior reporter for Yahoo Finance, is dedicated to covering housing, mortgages, and home insurance. Through her reporting, readers can stay updated on real estate and housing market news, reports, and analysis. By clicking here, users can access valuable information to inform their investing decisions. Additionally, reading the latest financial and business news from Yahoo Finance provides a comprehensive view of the economic landscape and helps individuals stay ahead in an ever-changing market.