Mortgage rates have climbed nearly 1% higher since the Fed began cutting rates. Here's why that's happened.
Another Fed rate cut is now official. Here's what that could mean for mortgage interest rates.
Buchta, Jim
Mortgage rates skyrocketed even as the Fed cut the overnight federal funds rate twice: by half a percentage point on Sept. 18 and by a quarter of a percentage point on Nov. 7. This goes to show that mortgage rates sometimes zig when the Fed zags. Not usually, but sometimes. The discon...
inflation is running at about 2.9%—approximately 45% higher than the Fed’s inflation target. Snaith suggests the central bank acted too quickly when it cut rates in the last quarter of 2024. President Donald Trump has been vocal about his desire for the Fed to cut rates, but Snaith ...
Mortgage Rates Haven't Moved Much Since Fed Week Thu, Jan 2 2025, 4:40 PM The last time mortgage rates were moving with any sense of urgency was in the days surround the Fed's rate cut on December 18th. Incidentally, that mo... Mortgage Rates Slightly Higher as Markets Close Earl...
aggressively during 2022 and 2023—mortgage rates are pushed higher. Conversely, when the Fed lowers the federal funds rate, it's usually expected that mortgage rates will fall. So does the Fed rate cut announced Wednesday—its third in as many meetings—mean we can expect mortgage r...
The result is that borrowers who have been hoping for much-lower-rate loans could be disappointed. Loan rates may barely budge if the Fed sticks with its plan to cut its key short-term rate only twice next year. “This could be the last cut...
Because the Fed’s rate decisions serve as a basis for savings instruments, raising or lowering the fed funds rate can push the SOFR up or down. ARM rates, in turn, go up or down as well when the rate resets.All this means that, if the fed funds rate goes up, your ARM rate will...
towards the Federal Reserve’s target rate of 2% and a gradual cooling of the labor market from its recent levels. We also expect the Federal Reserve to continue on its implied rate cut path over the course of the next year. We expect mortgage rates to decline over 2025, but very ...