11/06/2026
The Bigger Picture: What Elections, Treasury Yields, Jobs & Fuel Prices Could Mean for Housing
There’s a lot happening in the economy right now, and some of it could be encouraging news for homebuyers!
Following the midterm elections, Wall Street and the bond market are reacting to the prospect of divided government. Why does that matter? Because a divided government can make it more difficult to pass major spending programs, potentially reducing pressure on government borrowing and interest rates.
Here’s what caught my attention this week:
Treasury Yields Are Falling
The 10-year Treasury yield has dropped from roughly 5.3% a month ago to around 4.84%.
Why is that important? Because mortgage rates tend to follow the direction of the 10-year Treasury yield. When yields decline, mortgage rates often follow, although not always immediately.
Mortgage Rates Are Showing Improvement
According to the Mortgage Bankers Association, the average 30-year fixed mortgage rate recently eased to 7.30%.
It’s not a huge drop, but movement in the right direction is certainly welcome!
The Jobs Market Is Holding Steady
Private employers added 86,000 jobs in October, slightly better than economists expected.
Hiring remains modest, but businesses are still adding jobs. That’s an important piece of the economic picture.
Oil and Fuel Prices Are Coming Down
We’re also seeing some relief in energy prices. Oil prices have been declining, and gasoline prices have followed.
Lower energy costs can help ease inflation pressures, which could ultimately provide additional support for mortgage rates.
So What Does All This Mean for Housing?
Here’s where things get interesting.
Mortgage applications for home purchases are down 19% compared with a year ago. That tells us buyer activity remains slow.
But fewer buyers competing for homes can also mean more negotiating power.
We’re seeing opportunities for buyers to negotiate on pricing, inspections, repairs, closing costs, and seller concessions.
Meanwhile, national home prices are up just 1.7% over the past year, according to Cotality. Appreciation has slowed considerably, and of course, every local market is different.
My Takeaway
I don’t have a crystal ball, and I certainly wouldn’t suggest anyone make a real estate decision based solely on where interest rates might go.
But when you combine improving Treasury yields, some relief in mortgage rates, lower fuel prices, and fewer competing buyers, there are reasons to pay attention.
Here in Colorado Springs and the surrounding communities, buyers have negotiating opportunities we haven’t seen in quite some time.
Sometimes the best opportunity isn’t waiting for the perfect interest rate. It’s finding the right property at the right price, with terms that work for you.
If you’ve put your buying or selling plans on hold, perhaps it’s time to revisit the conversation.
Uli Pryse | Century 21 Altitude Real Estate
Turning what-ifs into we’ve-got-this.