3 ms·
I don’t think so… I mean which inflation figure are you talking about? The one that happens to be about what a 30-year mortgage would also be right now? That’s
by gymbeaux 4y ago
I don’t think so… I mean which inflation figure are you talking about? The one that happens to be about what a 30-year mortgage would also be right now? That’s not usually the case. Mortgage rates are “fed benchmark” + a couple percentage points. Beyond that, correlation to inflation is coincidental.
- lazide 4y agoSee my other comments - the fed has been intervening as part of QE since ‘07-‘09 and until recently. they gradually tapered then stopped Dec ‘22. No surprise that mortgage rates started doing weird stuff about then eh? The relationships to the fed funds rate is also because that is the rate a bank or other big entity can always borrow at, and the fed is happy to ‘print’ as much money as necessary to satiate all qualified applicants at that rate.