Fed Cut: Why Mortgage Rates Still Rise

Despite the Federal Reserves recent quarter-point interest rate cut, the average thirty-year fixed mortgage rate has risen, contrary to expectations. This increase, from around 6.25% to 6.34%, is due to investors demand for higher returns on long-term government bonds, which influences mortgage rates more than the Feds overnight rate. This small percentage change can significantly impact borrowers, adding roughly $70-$80 to monthly payments on a $400,000 loan. DNN | The Daily News Now! The world’s first global local news network. Every city. Every story. AI powered. Hosted on Acast. See acast.com/privacy for more information.