Understanding Why Mortgage Rates Don’t Always Follow the Fed
When most people start thinking about buying a home or refinancing, one of the first things they do is start checking mortgage rates. And that’s when they might notice something a bit strange: mortgage rates don’t always seem to follow the Federal Reserve’s actions. It’s true, while the Fed’s policies influence many aspects of the economy, they don’t directly set mortgage rates. So why do mortgage rates sometimes seem to go in the “wrong” direction, even after a Fed announcement? Here are the key factors that can cause mortgage rates to move in unexpected ways: 1. The Fed Doesn’t Directly Set...
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