High Gas and Rising Mortgage Rates Trouble Trump as Midterms Near

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-26T09:14:47.358Z • Permanent link

President Trump's latest economic briefing to the United Nations General Assembly has been met with skepticism by many Americans, who continue to feel the pinch of rising prices due to the ongoing conflict in Iran. According to data from the U.S. Energy Information Administration, gas prices have been steadily increasing since January, with the national average reaching $3.07 per gallon as of September 15. This increase has particularly affected low-income households, who spend a larger portion of their income on fuel.

Meanwhile, the Federal Reserve has been closely monitoring the situation, as rising gas prices can exacerbate inflationary pressures and erode consumer confidence. According to a report by the Federal Reserve Bank of New York, the 10-year Treasury yield has been steadily rising since August, reaching 3.05% as of September 20. This increase in long-term interest rates has significant implications for the mortgage market, where rates have been influenced by the Fed's monetary policy decisions.

The Federal Open Market Committee's (FOMC) decision to keep interest rates steady in July was widely seen as a response to the slowing economic growth, which was partly attributed to the trade tensions with China and the ongoing conflict in Iran. However, with the national debt exceeding $23 trillion and the federal budget deficit projected to reach $1.04 trillion in 2023, many economists are questioning the Fed's ability to maintain its current monetary policy stance.

The rising gas prices and mortgage rates are expected to have a significant impact on the mid-term elections, which are just a few months away. Many researchers at the University of Michigan's Surveys of Consumers have been tracking the impact of rising prices on consumer confidence, which has been steadily declining since January. According to a report by the University of Michigan, the Consumer Confidence Index (CCI) fell to 92.9 in August, its lowest level since October 2012.

The impact of rising prices on the housing market is also being closely watched by policymakers and researchers at the National Association of Realtors (NAR). According to a report by the NAR, existing home sales have been declining since January, with the number of sales falling by 3.6% in August compared to the same period last year. This decline is partly attributed to the rising mortgage rates, which have made it more expensive for homebuyers to secure financing.

The rising gas prices and mortgage rates are part of a broader pattern of economic uncertainty that has been affecting the United States since the start of the year. The ongoing trade tensions with China, the conflict in Iran, and the slowdown in global economic growth have all contributed to a decrease in investor confidence, which has been reflected in the decline of stock prices and the rise of interest rates.