Mortgage rates fell today even though the Fed "raised rates." What’s up with that? There are all kinds of rates. Some are fixed. Some are adjustable. Some apply to longer-term debt (like mortgages.
We are now offering fully branded, Automated Weekly Newsletters delivered by email, social media, web, mobile and print PDFs. Learn more and see examples here: Learn.
Given that movements in the fed funds rate are closely linked to movements in short-term interest rates, but less so to movements in long-term interest rates, changes in the policy rate are likely to impact the yield curve. 4 The next figure compares the fed funds rate with the difference between 10-year and one-year Treasury bond rates.
The 30-year fixed-rate mortgage averaged 3.49% during the week. As a result, many analysts expect the Fed to cut interest rates by 25 basis.