Insight
The Federal Reserve cut rates by 25 basis points (0.25%), but mortgage rates went up due to uncertainty in the market stemming from what the Federal Reserve chairman said.
Why Mortgage Rates are Rising as the Fed Keeps Cutting
Summary
Mortgage rates are unexpectedly increasing despite the Federal Reserve cutting rates, primarily due to concerns about inflation and the labor market. Hosts should understand that economic factors influencing the bond market, and subsequently mortgage rates, impact housing affordability and potentially the housing market.
Key takeaway