WASHINGTON (Reuters) – U.S. mortgage rates rose to a four-month high this week and could rise further on fears that newly-elected President Donald Trump’s proposed economic policies could fuel inflation.

The average interest rate on the popular 30-year fixed-rate mortgage rose to 6.79% from 6.72% last week, the highest level since July, mortgage financing agency Freddie Mac said Thursday.

Rates have risen for six consecutive weeks and are up 71 basis points since the end of September.

As supply remains below pre-pandemic levels, rising mortgage rates and higher home prices have combined to suppress sales of previously owned homes, which hit a 14-year low in September.

“Buyers who waited until after the election to get into the market may not see interest rates as low as they had hoped,” said Lisa Sturtevant, chief economist at Bright MLS.

The 30-year fixed mortgage rate trails the 10-year Treasury note, whose yield rose to the highest level in four months in the wake of Republican Trump’s victory in the US presidential race. Trump campaigned on a platform of tax cuts, which economists say would undermine the economy, widen budget deficits and increase government borrowing.

He also pledged to impose a 60% tariff on Chinese goods and a levy of at least 10% on all other imports, which economists expect will reignite inflation and reduce the Federal Reserve’s ability to cut rates .

Most homeowners have mortgage rates below 4% and the so-called ‘rate lock’ means the market for previously owned homes lacks sufficient supply. Bright MLS estimates that the average monthly mortgage payment to buy a $400,000 home has increased by nearly $200 in just six weeks.

(Reporting by Lucia Mutikani; Editing by Aurora Ellis)