Posted To: Mortgage Rate Watch

In the past 2 weeks, there’s been big news about inflation and seemingly big news about Fed policy. Both are threats to low interest rates, but not just yet, apparently. After taking last week’s huge inflation numbers in stride the bond market moved on to focus on Fed policy this week. The Federal Reserve (aka, the Fed) is often a source of confusion for consumers when it comes to mortgage rates. The evening news says things like “the Fed kept rates unchanged,” and people assume it has something to do with mortgage rates. The Fed Funds Rate (the thing the Fed actually decides to hike, cut, or hold steady) has almost nothing to do with the mortgage market. Mortgage rates are infinitely more concerned with the Fed’s bond buying policies. Movement in the bond market is the foundation of day-to…(read more)

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Published On: May 21, 2021 / Categories: Mortgage News /