Everyone Wants Lower Rates…Until Inflation Hits

In this brief video, a presidential figure (Speaker A) announces two executive orders that continue a policy of purchasing $200 billion in mortgage‑backed securities, a move credited with driving mortgage rates to their lowest level in five years and reducing the annual cost of a typical new mortgage by about $5,000. Hannah Hammond then evaluates the strategy, acknowledging that the bond purchases help alleviate the current U.S. housing‑affordability crisis by suppressing interest rates. She cautions, however, that emerging geopolitical tension—specifically the conflict in Iran, which she describes as an “excursion”—could push oil prices higher, fuel inflation, and create upward pressure on mortgage rates. Hammond predicts that, despite the short‑term relief from the bond purchases, rates may remain elevated for a longer period if the Iran situation persists, and she calls for continued monitoring of how these macro‑economic forces interact with housing‑market affordability.










