The Fed Cut Rates… So Why Are Mortgage Rates Climbing?

The Federal Reserve has finally started to cut its federal-funds rate. And if you’ve been following along, you might have noticed something odd happening…

Normally, when the Fed cuts rates, we would expect mortgage rates to come down, too. But this time, the opposite is happening. Mortgage rates have actually climbed since the Fed’s decision.

This unexpected move has many scratching their heads. Folks assumed that with a lower cost of short-term borrowing, mortgage rates would also decline.

So today, we’ll examine the moving parts that determine mortgage rates – and explain the recent surprising move…

This post originally appeared at DailyWealth.