Curious why mortgage rates keep climbing even after the Fed’s recent rate cuts? In episode twenty-seven of the RiskWire Webcast, hosts Reena Agrawal, Research Economist, and Eric Fox, Chief Economist, discuss the impact of Fed’s rate cut in September 2024 on mortgage rates. With growing concerns about the recent rise in mortgage rates as 2025 approaches, our economists offer expert insights and explanations.
Webcast Highlights:
- As of October 2024, mortgage rates have reached 6.72%, with little likelihood of dropping below 6% soon.
- While Fed rate cuts sometimes lead to lower mortgage rates, rates more closely follow the ten-year Treasury yield.
- Recent economic data, including continued growth in GDP, higher-than-expected inflation in September 2024, and lower-than-expected unemployment rates in October 2024, have led investors to expect persistent inflation. As a result, Treasury yields have risen, pushing mortgage rates higher.
For an analysis of why mortgage rates are up and what could be ahead, listen to the latest RiskWire Webcast episode: Webcast & Interviews – RiskWire, powered by Veros
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