4 ms·
This rate is for a 30-year fixed rate mortgage, and more a reflection of the uncertainty for that period of time and not something that will necessarily influen
by jasoneckert 4y ago
This rate is for a 30-year fixed rate mortgage, and more a reflection of the uncertainty for that period of time and not something that will necessarily influence shorter-term lending rates.
- lumost 4y agoThat could lead to a problem if people are betting on a refinance…
- baby-yoda 4y agoThat conflates term and other risk premiums. Interest rates are composed of: - Risk Free Rate - Inflation - Default Risk Premium - Liquidity Premium - Maturity Premium The RFR has of course increased substantially in the last year but the other 4 components can easily be assessed as "riskier" when comparing to a year ago. Shorter term rates will absolutely be affected by the same components to varying degrees.
- vinyl7 4y agoThe interest rate shot up because the Fed stopped buying MBS. Banks now have to charge higher interest rates so they can make them attractive to investors compared to other investment vehicles like bonds