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Earlier this month, the Federal Reserve lowered its benchmark lending rate to 4.00%-4.25%. While this resulted in record-high stock market numbers, mortgage lending rates didn't join the celebration.
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This is mainly because the 10-year Treasury bond yields increased, as bond investors didn't receive the assurance they were hoping for. Instead, some felt that the Federal Reserve wasn't concentrating as hard on inflation numbers as they should, especially after economic projections from the Fed showed that more inflation was expected for 2026.
However, other investors are waiting for the Federal Reserve to shift its emphasis from fighting inflation to boosting the labor market, especially because of weak employment data released earlier this month. This is why Fed Chair Jerome Powell called Wednesday's rate cut a "risk management" move.
Want to know about today's mortgage interest rates? Call me, or refer your buyers to me for a fast, free loan pre-qualification.1
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