The Mortgage Reports Blog: What Mortgage Rates Will Do Over The …
Here is a new Post at The Mortgage Reports Blog: What Mortgage Rates Will Do Over The ….
Dan Green blogs about mortgages, real estate, equity management, and other personal finance topics. Based in Chicago and Cincinnati.
Here is a response on similar topic:-
Why do mortgage rates keep going up after the Fed lowers their interest rate?
Mortgage rates are not driven by fed rates. They are driven by the bond market, which competes with mortgage backed securities for capital. Investors need to buy the mortgages from the originators, and the rates are determined by their pricing models.
As a previous poster noted, mortgage rates follow the 10 year treasury most closely. The spread between the 10 year and mortgage rates has been increasing due to increased fears of inflation (which the fed cuts make even worse) and the general perceived riskiness in the mortgage market (forclosure rate?). As such, investors are saying they'd rather invest in other securities because the rates are not paying them enough for the risk they are taking. That is why rates sometimes go up when the fed cuts.
FYI, here is a list of recently published Posts on same topic:-
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Here is a news article on related topic:-
Mortgage rates fall to new low The Business Journal of the Greater …
“Mortgage rates followed other interest rates lower this week amid reports of slower economic growth,” says Frank Nothaft, chief economist at Freddie Mac …
