The real estate market is buzzing with opportunities, but a recent federal development could impact mortgage rates—and therefore housing affordability—for years to come. Bill Provost of Franklin Loan Center breaks down what the Congressional Budget Office (CBO) revealed about the so-called “Big Beautiful Bill.”
According to the CBO, this new legislation could add more than $3 trillion to the federal deficit over the next decade. Why does this matter for those buying or selling homes? Because added deficit spending means more government borrowing, and that drives up the supply of Treasury bonds. These compete directly with mortgage-backed securities (MBS), impacting how mortgage rates are priced.
In simple terms: when bond supply goes up, prices drop, and interest rates rise. And in real estate, even a slight uptick in mortgage rates can dramatically affect monthly payments, loan qualifications, and overall home affordability.
This is especially relevant for first-time buyers, real estate investors, and sellers trying to price their homes competitively. Whether you’re browsing for your next home or are looking for an opportunity to refinance your current mortgage—this is information you can’t afford to ignore.
Watch the full video to hear Bill’s expert insights on how Washington’s decisions ripple into your backyard—and your wallet.
📈 Stay ahead of the curve. Stay informed. Stay local.