Why are mortgage rates increasing despite a rate cut from the Fed?

Why are mortgage rates increasing despite a rate cut from the Fed?

Mortgage rates are rising again despite the Federal Reserve's first rate cut in nearly a year, underscoring how a range of factors shape borrowing costs.

Why Long-Term Rates Are Rising Despite Fed Rate Cuts

Too many investors think the federal funds rate is a magic number the Federal Reserve uses to control all interest rates. They’re wrong. The fed funds rate isn’t even a single rate – it’s a range. And lenders and borrowers in the market where fed funds trade don’t have to stay within that range. Here’s what the fed funds rate really is: the interest rate at which banks lend money to each other overnight. That’s it. Nothing magical about it. It’s…

CWEB Business News Surging Mortgage Rates Defy Fed's Rate Cut, Squeezing Homebuyer Budgets

In a move that has puzzled many prospective homebuyers, the average interest rate on a 30-year fixed-rate mortgage has climbed to 6.34% this week. This increase, reported by Freddie Mac in its Primary Mortgage Market Survey, marks a rise from the previous week’s 6.3% and stands notably higher than the 6.12% average seen at this […]

Financial News Network - Why are mortgage rates increasing despite a rate cut from the Fed?

Mortgage rates are climbing for the second week in a row, even after the Federal Reserve’s first rate cut in nearly a year — highlighting how a range of factors drive rates on home loans.Read More …