How the Trump/Musk dispute could influence mortgage rates

Musk has limited Congressional influence

If we consider the possibility that Musk could prevent the tax bill from passing, that might lead to a reduction in Treasury supply to the bond market and potentially improve rates. However, it’s unclear how much influence Musk has over members of Congress. While Musk is undoubtedly a prominent figure, Trump is still the dominant influence over the Republican Party, including Republicans in Congress. It seems unlikely that Musk’s interests would take precedence over those of Trump, so this possibility seems remote.

Musk will put the trade war in the spotlight

Musk stated today that tariffs could potentially lead to a recession. If the trade war gets worse going forward, the White House is likely to avoid engaging in any social…