Mortgage rates jump 20 basis points following Fed cut
While the Federal Reserve cut its benchmark interest rate this week, mortgage rates responded by doing just the opposite.
The average rate on the 30-year fixed mortgage has jumped 20 basis points since Chairman Jerome Powell announced the cut on Wednesday and held a news conference, according to Mortgage News Daily.
This happened the last time the Fed lowered its rate as well, and the reason is pretty simple: the bond market had already priced in a cut, but it didn’t like the commentary from Powell.
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So many of the so-called experts keep talking about how mortgage rates just need to come down into the fours and everyone’s gonna jump back into the housing market. But the truth is even rate much lower than that will not make homes affordable because the prices are just too high. And wages are not keeping up so that only leaves one option left for homes to become more affordable. Prices coming down.
h/t Boo_Randy_II