March 25, 2023
Understanding the Relationship Between Mortgage Rates and Fed Rate Hikes
MortgagekivablgThe Federal Reserve increased the benchmark federal funds rate by a quarter point (.25%) yesterday. As a result, some may have expected consumer mortgage rates to also rise by 25%. The Fed’s action would cause the 30-year fixed rate, which is currently priced at 6.75%, to increase to 7.00%. However, the opposite happened. The 30-year fixed rate actually decreased from 6.75% to 6.50%, or about a quarter point. How come? How can they go in different directions? Recommended: Does having an overdraft affect getting a mortgage? How a Divorce Can […]
