This is a YouTube video titled "WHAT MOVES MORTGAGE RATES?!" containing a monologue or presentation discussing the factors influencing mortgage rates, focusing on inflation data and recent economic events in the US and Canada. The content was created in February 2025 and explains why mortgage rates fluctuate beyond just central bank rate changes.
What moves mortgage rates? It's easy to see the headlines where the Federal Reserve is cutting rates. That should mean mortgage rates are cut. It's not quite that simple. We've talked about it for quite some time. It's all about the data. That's what mortgage rates care about. Inflation data, to be specific. Well, today the November CPI core inflation came out and it was right in line with the target at 0.3% inflation for the month of November. Now, reading into it, it showed that the rent expenses were actually getting better. That's been the one, you know, stubborn thing that hasn't dropped. It finally has. Mortgage rates actually started to get lower. And then Canada came out and they did a big half percent rate cut with their federal rates, which you would think that would help mortgage rates. However, it was about what they talked about. Canada said they're a little bit fearful of the potential US Tariffs, so they might not have any more rate cuts coming up. That's not what the market wanted to hear. And mortgage rates started going back up. So it wasn't about them cutting rates, it's about the data and the meaning behind the rates.
