You’ve probably heard that when the Fed cuts rates, mortgage rates go down too. But is that really how it works? Should you start celebrating the great news for your mortgage and pop the champagne?...Not just yet!
In this episode, I’ll explain the complex relationship between the Fed Funds Rate and your mortgage rates, and why Fed rate cuts don't always translate directly into lower rates on your home loan.
You will learn how the market often predicts the Fed moves (meaning the rate impact is already baked in!), and how rate cuts actually often signal something ominous is around the corner.
Chapters
(00:00:00) - Intro
(00:01:04) - How banks really set your interest rates
(00:01:38) - How 10-year treasury yield affects mortgages
(00:02:47) - How COVID changed the game on rates
(00:03:32) - Fed rate cuts and recessions
Get in contact with me:
💻 Geneva Financial - https://bit.ly/3WTuyWM
💻 Facebook - https://www.facebook.com/millsmortgage
📷 Instagram - https://www.instagram.com/mikemillsmortgage
🎵 TikTok - https://www.tiktok.com/@mikemillsmortgage
📺 YouTube - https://www.youtube.com/@mikemillsmortgage
💻 LinkedIn - https://www.linkedin.com/in/mike-mills-49a09621/
