Mortgage Rates ROSE After Fed Rate Cut--How is that Possible??
In this video, Austin Klar explains that the Federal Reserve’s recent 50‑basis‑point cut to the federal funds rate does not directly affect mortgage rates. He points out that mortgage rates are more closely tied to the 10‑year Treasury yield, which reacts quickly to economic data such as inflation and labor market reports. Klar notes that after the Fed’s historic cut, the 10‑year yield fell over 100 basis points in recent months, leading mortgage rates to drop from a peak of about 7.5% earlier in the year to roughly 6.1% at the time of the video. He advises viewers to ignore the Fed’s policy moves when predicting mortgage rates and instead monitor the 10‑year yield, inflation, and labor data—information he tracks daily as part of his job. He invites questions and encourages viewers to follow him for ongoing market updates.
