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Why a new Fed policy looks like bad news for mortgage rates

davfordavfor
in Off-Topic
Another possible impact from the Feds evolving thinking about interest rates and inflation....
....while mortgage rates are often influenced by what the central bank does, there's no direct connection. Instead, mortgage rates follow the interest, or yields, on long-term Treasury bonds.

If the Fed's low rates cause inflation to rise, it will eat away at bond yields — and investors will demand higher interest, experts say. Yields will increase, and mortgage rates will go up, too.

Rates on home loans already are poised to move higher in the coming weeks as a delayed fee on refinance loans is implemented, says Matthew Graham, chief operating officer of Mortgage News Daily.
https://yahoo.com/news/fed-policy-could-bring-end-060000585.html

Comments

  • ShostakovichShostakovich
    Wife and I have been going through the refi paperwork over the past 5 weeks or so. In that time, mortgage rates four our home value and loan amount have been all over the place, changing almost daily. We are lucky we locked in when we did.
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