{"id":7690,"date":"2024-11-11T13:28:53","date_gmt":"2024-11-11T13:28:53","guid":{"rendered":"https:\/\/finderica.com\/despite-fed-cut-mortgage-rates-go-up-in-eventful-week\/"},"modified":"2024-11-11T13:28:53","modified_gmt":"2024-11-11T13:28:53","slug":"despite-fed-cut-mortgage-rates-go-up-in-eventful-week","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=7690","title":{"rendered":"Despite Fed Cut, Mortgage Rates Go Up in Eventful Week"},"content":{"rendered":"<div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">The Federal Reserve has cut short-term interest rates by 25 basis points. Nevertheless, mortgage rates went up again. <\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">The average rate on the 30-year fixed-rate mortgage climbed 11 basis points in the week ending Nov. 7, to 6.86%, according to rates provided to SS by Zillow. A basis point is one-one hundredth of a percentage point.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">Observers struggle to pinpoint why rates went up. The <\/span><span class=\"_28z5Fp _3-to_p\">October employment report<\/span><span class=\"_28z5Fp _3-to_p\">, released Nov. 1, showed weaker-than-expected job gains. Normally, mortgage rates would drop, or at least level off, in reaction to a disappointing jobs report. But the 30-year mortgage edged higher.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">Markets might have concluded that the job market&#8217;s poor showing in October springs from temporary factors: labor strikes and business closings caused by hurricanes Helene and Milton. In that case, investors concluded that people would soon get back to work and that the weak jobs number didn&#8217;t foreshadow a faltering economy. That line of reasoning gave <\/span><span class=\"_28z5Fp _3-to_p\">mortgage rates<\/span><span class=\"_28z5Fp _3-to_p\"> the green light to keep rising.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<div>\n<div>\n<div class=\"_3wlVa6 _2247K8 _3eCw6n\">\n<div class=\"_3wlVa6 _2247K8\">\n<div>\n<div class=\"_2vcpA4 td77J8 PIqV0k _2lZbKL _32aq7f _1r_py0 _33JiRF _2F9T-X _1xbdug\" style=\"flex-direction:column\">\n<div class=\"_1TDqyw\">\n<p><span class=\"_3P4ktl zeCuXk _28z5Fp _1My7YX\" data-currency=\"Text\">Explore mortgages today and get started on your homeownership goals<\/span><\/p>\n<p><span class=\"_21EZtY _2LuWPZ _3_uGsM _28z5Fp N36gAq\" data-currency=\"Text\">Get personalized rates. Your lender matches are just a few questions away.<\/span><\/p>\n<\/div>\n<div class=\"_2vcpA4 PIqV0k wnPEbn _2N11b- _1TDqyw\">\n<div class=\"_1TDqyw\">\n<div class=\"_2w4PM3\">\n<div data-currency=\"Columns\" class=\"_2DPHJa _2TtTbq _2HM5Cl _3UifXY\">\n<div data-currency=\"Column\" class=\"_12cv4d qVG6Ts\"><label class=\"_2lZ2l6\" for=\"nw-aria-ssr-5-3-1-1-3\"><span class=\"TS4Kq- _28z5Fp vRhsJJ _2lZ2l6\">What&#8217;s your property type?<\/span><\/p>\n<div class=\"_1IaSjl emgdYA _1udEV5\"><select class=\"_18mj-v _30anQr _1udEV5 g2zh3L\" data-currency=\"Select\" id=\"nw-aria-ssr-5-3-1-1-3\" placeholder=\"Select your option\"><option value=\"\" disabled>Select your option<\/option><option selected value=\"house\">Single family home<\/option><option value=\"townhome\">Townhouse<\/option><option value=\"condo\">Condo<\/option><option value=\"multi-family\">Multi-family home<\/option><\/select><svg viewbox=\"0 0 24 24\" aria-hidden=\"true\" class=\"_3qh7ju _2ulGkX\" fill=\"currentcolor\" focusable=\"false\"><path d=\"M5.942 8h12.116c.838 0 1.257 1.02.664 1.618l-6.056 6.104a.939.939 0 01-1.332 0L5.278 9.619C4.685 9.02 5.104 8 5.942 8z\"><\/path><\/svg><\/div>\n<p><\/label><\/div>\n<div data-currency=\"Column\" class=\"_12cv4d qVG6Ts\"><label class=\"_2lZ2l6\" for=\"nw-aria-ssr-5-3-1-1-4\"><span class=\"TS4Kq- _28z5Fp vRhsJJ _2lZ2l6\">How do you plan to use this property?<\/span><\/p>\n<div class=\"_1IaSjl emgdYA _1udEV5\"><select class=\"_18mj-v _30anQr _1udEV5 g2zh3L\" data-currency=\"Select\" id=\"nw-aria-ssr-5-3-1-1-4\" placeholder=\"Select your option\"><option value=\"\">Select your option<\/option><option selected value=\"primary\">Primary residence<\/option><option value=\"secondary\">Secondary residence<\/option><option value=\"investment\">Investment property<\/option><\/select><svg viewbox=\"0 0 24 24\" aria-hidden=\"true\" class=\"_3qh7ju _2ulGkX\" fill=\"currentcolor\" focusable=\"false\"><path d=\"M5.942 8h12.116c.838 0 1.257 1.02.664 1.618l-6.056 6.104a.939.939 0 01-1.332 0L5.278 9.619C4.685 9.02 5.104 8 5.942 8z\"><\/path><\/svg><\/div>\n<p><\/label><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"_2w4PM3 _1TDqyw\"><button class=\"_3vZlz- _1egj3W IArdyX\" data-currency=\"Button\" type=\"button\"><\/p>\n<p><span class=\"_21EZtY _3VmbAf _8DgC29 _28z5Fp -Ibb7f\">Get Started<\/span><\/p>\n<p><\/button><\/p>\n<div class=\"PIqV0k _2HzeZ8 _28CJ7N\" style=\"width:200px\">\n<div style=\"width:200px\">\n<div class=\"_2vcpA4 _1jMsGa _3kfJwJ PIqV0k _2HzeZ8 _1TsDzX _2lZFUT _2molg9 sKjrZ8\" style=\"width:200px;gap:4px\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\" viewbox=\"0 0 16 16\" fill=\"none\"><path d=\"M8 0.666504L2 3.33317V7.33317C2 11.0332 4.56 14.4932 8 15.3332C11.44 14.4932 14 11.0332 14 7.33317V3.33317L8 0.666504ZM6.66667 11.3332L4 8.6665L4.94 7.7265L6.66667 9.4465L11.06 5.05317L12 5.99984L6.66667 11.3332Z\" fill=\"#006642\"><\/path><\/svg><span class=\"_2KctVY _28z5Fp\" style=\"font-size:11px;letter-spacing:0.055px\">Won\u2019t affect your credit score<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"_3P4ktl zeCuXk _28z5Fp _1My7YX\" data-currency=\"Text\" id=\"mortgages-and-fed-move-in-opposite-directions\"><span class=\"_3P4ktl zeCuXk _28z5Fp _3-to_p\">Mortgages and Fed move in opposite directions<\/span><\/h2>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">This week&#8217;s increase in mortgage rates marked the continuation of a brutal seven-week period in which the 30-year mortgage rose almost a percentage point. It rose from 5.89% in the week ending Sept. 19 to 6.86% in the week ending Nov. 7.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">Mortgage rates skyrocketed even as the Fed cut the overnight federal funds rate twice: by half a percentage point on Sept. 18 and by a quarter of a percentage point on Nov. 7. This goes to show that mortgage rates sometimes zig when the Fed zags. Not usually, but sometimes.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">The disconnect between the federal funds rate and mortgage rates arises from their different durations. Banks pay the federal funds rate on money they borrow for one night. Homeowners pay their mortgage rate on money they borrow for up to 30 years, or around 11,000 nights.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">The long-term economic outlook doesn&#8217;t matter much for an overnight loan, but it matters a great deal for a 30-year mortgage. Optimistic economic expectations push upward on mortgage rates. This autumn&#8217;s rise in rates reflects these buoyant prospects.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<div>\n<div>\n<div class=\"_3wlVa6 _2247K8 _3eCw6n\">\n<div class=\"_3wlVa6 _2247K8\">\n<div>\n<div class=\"_2vcpA4 td77J8 PIqV0k _2lZbKL _32aq7f _1r_py0 _33JiRF _2F9T-X _1xbdug\" style=\"flex-direction:column\">\n<div class=\"_1TDqyw\">\n<p><span class=\"_3P4ktl zeCuXk _28z5Fp _1My7YX\" data-currency=\"Text\">Explore mortgages today and get started on your homeownership goals<\/span><\/p>\n<p><span class=\"_21EZtY _2LuWPZ _3_uGsM _28z5Fp N36gAq\" data-currency=\"Text\">Get personalized rates. Your lender matches are just a few questions away.<\/span><\/p>\n<\/div>\n<div class=\"_2vcpA4 PIqV0k wnPEbn _2N11b- _1TDqyw\">\n<div class=\"_1TDqyw\">\n<div class=\"_2w4PM3\">\n<div data-currency=\"Columns\" class=\"_2DPHJa _2TtTbq _2HM5Cl _3UifXY\">\n<div data-currency=\"Column\" class=\"_12cv4d qVG6Ts\"><label class=\"_2lZ2l6\" for=\"nw-aria-ssr-5-5-1-1-3\"><span class=\"TS4Kq- _28z5Fp vRhsJJ _2lZ2l6\">What&#8217;s your property type?<\/span><\/p>\n<div class=\"_1IaSjl emgdYA _1udEV5\"><select class=\"_18mj-v _30anQr _1udEV5 g2zh3L\" data-currency=\"Select\" id=\"nw-aria-ssr-5-5-1-1-3\" placeholder=\"Select your option\"><option value=\"\" disabled>Select your option<\/option><option selected value=\"house\">Single family home<\/option><option value=\"townhome\">Townhouse<\/option><option value=\"condo\">Condo<\/option><option value=\"multi-family\">Multi-family home<\/option><\/select><svg viewbox=\"0 0 24 24\" aria-hidden=\"true\" class=\"_3qh7ju _2ulGkX\" fill=\"currentcolor\" focusable=\"false\"><path d=\"M5.942 8h12.116c.838 0 1.257 1.02.664 1.618l-6.056 6.104a.939.939 0 01-1.332 0L5.278 9.619C4.685 9.02 5.104 8 5.942 8z\"><\/path><\/svg><\/div>\n<p><\/label><\/div>\n<div data-currency=\"Column\" class=\"_12cv4d qVG6Ts\"><label class=\"_2lZ2l6\" for=\"nw-aria-ssr-5-5-1-1-4\"><span class=\"TS4Kq- _28z5Fp vRhsJJ _2lZ2l6\">How do you plan to use this property?<\/span><\/p>\n<div class=\"_1IaSjl emgdYA _1udEV5\"><select class=\"_18mj-v _30anQr _1udEV5 g2zh3L\" data-currency=\"Select\" id=\"nw-aria-ssr-5-5-1-1-4\" placeholder=\"Select your option\"><option value=\"\">Select your option<\/option><option selected value=\"primary\">Primary residence<\/option><option value=\"secondary\">Secondary residence<\/option><option value=\"investment\">Investment property<\/option><\/select><svg viewbox=\"0 0 24 24\" aria-hidden=\"true\" class=\"_3qh7ju _2ulGkX\" fill=\"currentcolor\" focusable=\"false\"><path d=\"M5.942 8h12.116c.838 0 1.257 1.02.664 1.618l-6.056 6.104a.939.939 0 01-1.332 0L5.278 9.619C4.685 9.02 5.104 8 5.942 8z\"><\/path><\/svg><\/div>\n<p><\/label><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"_2w4PM3 _1TDqyw\"><button class=\"_3vZlz- _1egj3W IArdyX\" data-currency=\"Button\" type=\"button\"><\/p>\n<p><span class=\"_21EZtY _3VmbAf _8DgC29 _28z5Fp -Ibb7f\">Get Started<\/span><\/p>\n<p><\/button><\/p>\n<div class=\"PIqV0k _2HzeZ8 _28CJ7N\" style=\"width:200px\">\n<div style=\"width:200px\">\n<div class=\"_2vcpA4 _1jMsGa _3kfJwJ PIqV0k _2HzeZ8 _1TsDzX _2lZFUT _2molg9 sKjrZ8\" style=\"width:200px;gap:4px\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\" viewbox=\"0 0 16 16\" fill=\"none\"><path d=\"M8 0.666504L2 3.33317V7.33317C2 11.0332 4.56 14.4932 8 15.3332C11.44 14.4932 14 11.0332 14 7.33317V3.33317L8 0.666504ZM6.66667 11.3332L4 8.6665L4.94 7.7265L6.66667 9.4465L11.06 5.05317L12 5.99984L6.66667 11.3332Z\" fill=\"#006642\"><\/path><\/svg><span class=\"_2KctVY _28z5Fp\" style=\"font-size:11px;letter-spacing:0.055px\">Won\u2019t affect your credit score<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"_3P4ktl zeCuXk _28z5Fp _1My7YX\" data-currency=\"Text\" id=\"the-fed-approaches-its-goal\"><span class=\"_3P4ktl zeCuXk _28z5Fp _3-to_p\">The Fed approaches its goal<\/span><\/h2>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">The <\/span><span class=\"_28z5Fp _3-to_p\">Federal Reserve<\/span><span class=\"_28z5Fp _3-to_p\">&#8216;s recent stewardship contributes to the optimism. Inflation has faded, approaching the Fed&#8217;s goal of 2%. Meanwhile, total economic output grew at an annual rate of 2.8% in the third quarter, according to the Bureau of Economic Analysis.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">&#8220;Recent indicators suggest that economic activity has continued to expand at a solid pace,&#8221; the Fed explained in a statement. &#8220;Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee&#8217;s 2% objective but remains somewhat elevated.&#8221;<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">The Fed wants to get <\/span><span class=\"_28z5Fp _3-to_p\">inflation<\/span><span class=\"_28z5Fp _3-to_p\"> under control while preventing a recession: a difficult-to-achieve task known as a soft landing. The central bank raised interest rates in 2022 and 2023 to corral inflation. It has reduced the overnight rate in its last two meetings to support economic growth and dodge a recession. <\/span><\/p>\n<\/div>\n<h2 class=\"_3P4ktl zeCuXk _28z5Fp _1My7YX\" data-currency=\"Text\" id=\"trump-rally-carries-rates-higher\"><span class=\"_3P4ktl zeCuXk _28z5Fp _3-to_p\">Trump rally carries rates higher<\/span><\/h2>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">Donald Trump&#8217;s victory contributed to the rise in mortgage rates due to what a Wall Street Journal headline called an &#8220;epic, postelection rally.&#8221; The article exclaims, &#8220;Wall Street has rarely been more excited by an election.&#8221; As the election results came in, the investor class&#8217;s elation manifested in higher yields on government debt. Mortgage rates followed.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">&#8220;Bond yields are rising because investors expect Trump\u2019s proposed fiscal policies to widen the federal deficit and reverse progress on inflation,&#8221; said Lisa Sturtevant, chief economist for Bright MLS, a database of properties for sale in the mid-Atlantic region.<\/span><\/p>\n<\/div>\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">But the Journal offered a more optimistic appraisal: the prospect of &#8220;four years of tax cuts, deregulation and economic expansion.&#8221;<\/span><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.nerdwallet.com\/article\/mortgages\/weekly-mortgage-rates-11-7-24\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve has cut short-term interest rates by 25 basis points. Nevertheless, mortgage rates went up again. The average rate on the 30-year fixed-rate mortgage climbed 11 basis points in the week ending Nov. 7, to 6.86%, according to rates provided to SS by Zillow. A basis point is one-one hundredth of a percentage<\/p>\n","protected":false},"author":1,"featured_media":7691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[195],"tags":[419,2351,137,417,261,155],"class_list":{"0":"post-7690","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-cut","9":"tag-eventful","10":"tag-fed","11":"tag-mortgage","12":"tag-rates","13":"tag-week"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7690"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/7691"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}