📉 𝐖𝐡𝐲 𝐀𝐫𝐞 𝐌𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐑𝐚𝐭𝐞𝐬 𝐒𝐭𝐢𝐥𝐥 𝐇𝐢𝐠𝐡? 🏡
Despite recent 𝐅𝐞𝐝𝐞𝐫𝐚𝐥 𝐑𝐞𝐬𝐞𝐫𝐯𝐞 𝐫𝐚𝐭𝐞 𝐜𝐮𝐭𝐬, mortgage rates remain stubbornly high. In this video, we break down the key factors behind this disconnect:
📊 The influence of the 10-𝐲𝐞𝐚𝐫 𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐲𝐢𝐞𝐥𝐝
📈 The impact of 𝐩𝐞𝐫𝐬𝐢𝐬𝐭𝐞𝐧𝐭 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧
🌐 Broader 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐜𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐬
Understanding these dynamics is essential for potential 𝐡𝐨𝐦𝐞𝐛𝐮𝐲𝐞𝐫𝐬 and 𝐡𝐨𝐦𝐞𝐨𝐰𝐧𝐞𝐫𝐬 navigating today’s mortgage landscape.
💡 𝐒𝐭𝐚𝐲 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐚𝐧𝐝 𝐦𝐚𝐤𝐞 𝐜𝐨𝐧𝐟𝐢𝐝𝐞𝐧𝐭 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐜𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐢𝐧𝐠 𝐦𝐚𝐫𝐤𝐞𝐭.
#MortgageRates#EconomicInsights#FederalReserve#InterestRates#HomeBuyingTips
Many Americans are waiting for interest rates to fall. The Federal Reserve started a rate cutting cycle late in 2024. The Fed's main tool, the Federal funds rate, determines how money flows between banks. Lower interest rates can make loans cheaper, but so far this has only had a limited effect on mortgage rates. The interest rates that they can set are much less effective than most people assume. Since when they announced the first rate cut, the Treasury rates have gone up. The mortgage interest rates have gone up. They're trying to persuade people to do things in the market, but the market has its own logic, its own intentions. It's not likely that home prices come down typically. It's a much better hope to find affordability from rates coming down, and that can certainly happen. But it is going to have to come as a result of weaker economic data, lower inflation, or significantly less government borrowing.
