Austin Klar explains why mortgage rates don't follow the Federal Reserve's rate cuts. When the Fed cut rates by 0.5% in September, mortgage rates actually rose by the same amount. Mortgage rates move based on real-time economic data that changes daily, not Fed policy decisions.
If you're trying to gauge what's gonna happen with mortgage rates and are looking at what the Federal Reserve is doing with the federal funds rate, you're looking at the wrong data. We all know that the Federal Reserve slashed the federal funds rate by half a percent in September, but since that time, mortgage rates are actually up by half a percent. That might sound crazy to you, but there are several factors, economic factors that move mortgage rates up and down in real time, long before what the Fed decides to do with the federal funds rate at the next meeting or one of their 8 meetings they have throughout the year. If you wanna better understand how rates move, what data actually impacts them on a day-to-day basis and what to track going going forward. I made a whole video about that that I posted on my YouTube channel. Go check it out, the link's in my bio. And as always, reach out to me if you have questions or you want to better understand the market.
