Trump’s Low-Rate Boast: Potential Boost for Housing and Real Estate Stocks, Mixed Signals for Financials

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“Mortgage Rates just hit a Three Year Low despite Jerome “Too Late” Powell, and his never ending quest to keep Interest Rates high (against “TRUMP!”). It just shows that he has been wrong all along, because the Market is overtaking his obstinance. The Fed has been hurt and discredited during Too Late’s reign!”

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 three-year low mortgage rates could bolster investor sentiment toward homebuilders like D.R. Horton and Lennar, as well as mortgage-focused Rocket Companies, on expectations of stronger housing demand and refinancing activity. At the same time, his criticism of the Fed and interest-rate policy may inject volatility into financials and bank-focused ETFs (XLF, XLF-related Vanguard Financials ETF, XLFK equivalents like XLF and KRE), as investors reassess the rate outlook, net interest margins, and regulatory risks. Lower-rate expectations and political pressure on the Fed could also support real estate and consumer-discretionary ETFs (VNQ, XLRE, IYR, VCR, XLY) by improving borrowing conditions and consumer purchasing power, though the politicization of monetary policy may heighten overall market uncertainty.

Here are some of the stocks that might be affected:
D.R. Horton Inc ((DHI)),
Lennar Corporation ((LEN)),
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)).