6 ms·

Why are mortgage rates still going up when inflation is coming back down?

• riku_iki 3y ago
  probably inflation is still high compared to some benchmark used by fed.
• jessriedel 3y ago
  You can have zero inflation but high time-value of capital.
• HDThoreaun 3y ago
  Fed hasn't started buying bonds or lowering overnight rate
• mips_r4300i 3y ago
  The fed can say whatever it wants but I can go to the grocery store and show you inflation is still increasing. Pretty much all consumer stuff is still going up, despite how much the fed wants to have it not be true.
  • SantalBlush 3y ago
    The Fed says prices are still increasing, so what is this "the fed wants to have it not be true"? Have you actually listened to or read what Powell has said?
• bitshiftfaced 3y ago
  If people believe that the Fed will drop the rate back to nothing at some date close to the future, then investors will behave as though the interest rates aren't increasing, even if they are. In that case, it won't impact inflation. The Fed has to make the rate increase "real", so they must keep increasing the rate and/or keeping it at high levels.