This is a YouTube video titled "Mortgage Rates went up after the Fed Cut?!" containing a financial explanation about the relationship between Federal Reserve rate cuts and mortgage rate movements, recorded in December 2024. The speaker discusses market expectations and inflation concerns affecting mortgage rates after the Fed's policy changes.
The Fed cut, the mortgage rates went up. What's this all about? Like we talked before, the Federal Reserve rates totally different than mortgage rates. Everyone knew the Fed was going to cut rates by a quarter percent yesterday, so the market had already priced that in. It was the bigger picture in future forecasts that pulled mortgage rates higher. Since September of 2024, we come down from five and a quarter to four and a quarter on the federal Reserve interest rate. The Fed previously had projected that they would be at three and a quarter by the end of 2025. But this past Fed meeting, they raised an expectation to 3.75 because they weren't sold on inflation being under control, because mortgage rates saw that they.
