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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Mortgage rates just fell below 6% for the first time in years:”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Trump’s post highlighting mortgage rates falling below 6% could be seen as a tailwind for housing and real-estate-linked names, potentially boosting homebuilders like D.R. Horton (DHI) and mortgage originators such as Rocket Companies (RKT), while also supporting sentiment in real estate ETFs like VNQ, IYR, XLRE, and mortgage REITs such as Annaly Capital (NLY). Lower mortgage rates can stimulate homebuying and refinancing activity, which tends to benefit consumer discretionary exposure tied to housing (XLY, VCR) and improve credit and loan growth prospects for financials and regional banks (XLF, VFH, KRE). Broadly, this rate move could lift risk appetite across rate-sensitive sectors, but actual stock performance will still depend on the durability of lower rates and the broader economic outlook beyond the headline move and social media attention.
Here are some of the stocks that might be affected:
Annaly Capital Management ((NLY)),
D.R. Horton Inc ((DHI)),
Financial Select Sector SPDR Fund ((XLF)),
SPDR S&P Regional Banking ETF ((KRE)),
Vanguard Consumer Discretionary ETF ((VCR)),
Vanguard Financials ETF ((VFH)),
Vanguard Real Estate ETF ((VNQ)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)),
iShares U.S. Real Estate ETF ((IYR)),
Real Estate Select Sector SPDR Fund ((XLRE)),
Rocket Companies Inc ((RKT)).