Solutions For RealSolutions For Real
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

6 Steps to Creating a Home Inventory — Before It’s Too Late

July 9, 2025

How to Turn Summer Travel into More Business and Less Taxes

July 9, 2025

Why The SSA’s Big Beautiful Bill Statement Jeopardizes The Agency’s Trust

July 8, 2025
Facebook Twitter Instagram
Trending
  • 6 Steps to Creating a Home Inventory — Before It’s Too Late
  • How to Turn Summer Travel into More Business and Less Taxes
  • Why The SSA’s Big Beautiful Bill Statement Jeopardizes The Agency’s Trust
  • New Tariff Threats Tank Stocks: Find Out How to Protect Your Portfolio
  • Being ‘Nice’ Almost Cost Me My Business — Here’s What I Do Differently Now
  • Jack Dorsey Announces Bitchat Messaging App
  • Here Are the Traits OpenAI Executives Look For in New Hires
  • Big Beautiful Bill Estate Planning Ideas
Wednesday, July 9
Facebook Twitter Instagram
Solutions For RealSolutions For Real
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
Solutions For RealSolutions For Real
Home » Why mortgage rates are going up despite the Fed's interest rate cut
Mortgage

Why mortgage rates are going up despite the Fed's interest rate cut

News RoomBy News RoomOctober 22, 20240 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

Americans saw mortgage rates soar during the Federal Reserve’s aggressive campaign to fight inflation, leading many to hope for a reprieve after the central bank finally cut the federal funds rate last month for the first time in four years.

But instead of declining, mortgage rates have marched higher for the past three weeks, with the benchmark 30-year fixed surging to 6.44% as of Freddie Mac’s latest reading.

Mortgage rates spiked in 2022 and 2023 as the Fed hiked interest rates. In the span of just 16 months, the central bank approved 11 rate increases – the fastest pace of tightening since the 1980s. 

While the federal funds rate is not what consumers pay directly, it affects borrowing costs for home equity lines of credit, auto loans and credit cards. 

AMERICAN CONSUMERS SEE DEBT DELINQUENCY RISK RISING, HIGHER LONG-TERM INFLATION: NY FED

“Fixed mortgage rates move in relation to long-term interest rates like the yield on 10-year Treasury notes, both of which respond to the outlook for economic growth and inflation over the coming years,” Bankrate’s chief financial analyst, Greg McBride, told FOX Business. “Mortgage rates tend to move well in advance of any action the Federal Reserve takes with short-term interest rates, not in response.”

McBride noted that mortgage rates dropped a full percentage point between May and September from 7.2% to 6.2%, in expectation of coming Fed interest rate cuts. 

“The Fed’s more aggressive half-point rate cut in September increased the odds that the economy continues to grow, avoids recession, and that inflation could be higher than anticipated,” he said. “With that outlook, long-term interest rates – both Treasury yields and mortgage rates – have moved higher, reversing some of the decline seen in preceding months.” 

AMERICA IS ‘LONG OVERDUE’ FOR COST-CUTTING POLICIES: REP JODEY ARRINGTON

McBride added that even now, mortgage rates have only returned to where they were in mid-August and remain significantly lower than they had been as recently as May.

for sale sign in front of house

As for the latest increases, Hannah Jones, senior economic research analyst at Realtor.com pointed to the most recent employment and inflation data both coming in higher than expected, which put upward pressure on mortgage rates.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“Rates have shown considerable volatility lately, and may continue to do so as the market digests upcoming PCE inflation and the October jobs report in the next couple of weeks,” Jones told FOX Business. “Overall, we still expect a downward long-term mortgage rate trend.”

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

Mortgage rates fall for fifth straight week, lowest since mid-April

Mortgage July 4, 2025

Mortgage rates fall for 4th straight week, lowest since early May

Mortgage June 28, 2025

US regulator directs Fannie Mae, Freddie Mac to consider cryptocurrency as an asset

Mortgage June 27, 2025

Home sellers face harsh new reality as listings hit record $698B value

Mortgage June 10, 2025

Mortgage rates drop for first time in weeks, still hover near 7%

Mortgage June 6, 2025

Mortgage rates rise for third straight week, hover near 7%

Mortgage May 30, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

How to Turn Summer Travel into More Business and Less Taxes

July 9, 20250 Views

Why The SSA’s Big Beautiful Bill Statement Jeopardizes The Agency’s Trust

July 8, 20250 Views

New Tariff Threats Tank Stocks: Find Out How to Protect Your Portfolio

July 8, 20250 Views

Being ‘Nice’ Almost Cost Me My Business — Here’s What I Do Differently Now

July 8, 20250 Views
Don't Miss

Jack Dorsey Announces Bitchat Messaging App

By News RoomJuly 8, 2025

Twitter co-founder and CEO of Block Jack Dorsey launched the beta version of a new…

Here Are the Traits OpenAI Executives Look For in New Hires

July 8, 2025

Big Beautiful Bill Estate Planning Ideas

July 7, 2025

Think You’re Building Wealth? These 16 Money Mistakes Say Otherwise

July 7, 2025
About Us
About Us

Your number 1 source for the latest finance, making money, saving money and budgeting. follow us now to get the news that matters to you.

We're accepting new partnerships right now.

Email Us: [email protected]

Our Picks

6 Steps to Creating a Home Inventory — Before It’s Too Late

July 9, 2025

How to Turn Summer Travel into More Business and Less Taxes

July 9, 2025

Why The SSA’s Big Beautiful Bill Statement Jeopardizes The Agency’s Trust

July 8, 2025
Most Popular

How To Manage Inherited IRA Rules That Can Surprise And Trap Heirs

January 18, 20251 Views

6 Steps to Creating a Home Inventory — Before It’s Too Late

July 9, 20250 Views

How to Turn Summer Travel into More Business and Less Taxes

July 9, 20250 Views
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 Solutions For Real. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.