‘The Fed’s’ Rates and Mortgage Rates aren’t the same #homeloans #homebuyer #thefed #rates

Each time the Fed raises their rates, we hear some buyers with some concern that, oh, no, rates are going up, as if all rates are going up. But did you know that the Fed's rates and mortgage rates have nothing to do with one another? Yesterday was a prime example. February 1st, the Federal Reserve raised their rates a quarter percent, but mortgage rates dropped. And that's because the Fed had good news about inflation being under control. Mortgage rates are tied to inflation. If inflation's high, mortgage rates go up. If inflation's low like yesterday, mortgage rates drop. So two totally different things, and it's very important not to get those mixed up.