Understanding the Relationship Between Mortgage Rates and Fed Rate Hikes
The Federal Reserve increased the benchmark federal funds rate by a quarter point (.25%) yesterday. As a result, some may have expected consumer mortgage rates to also rise by 25%. The Fed’s action would cause the 30-year fixed rate, which is currently priced at 6.75%, to increase to 7.00%. However, the opposite happened. The 30-year … Read more