Rates climbed as the Federal Reserve moved to curb soaring inflation. On Wednesday, the Federal Reserve announced it would raise interest rates for the first time since 2018. The action marks the end of the Fed’s pandemic-era policy. The federal funds rate now stands at 0.25-0.5%.
While mortgage rates are not directly tied to the federal funds rate, but rather track the yield on 10-year Treasury bonds, those bonds are influenced by many things, including investor’s reactions to the Fed’s move and inflation.
“The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year,” Sam Khater, Freddie Mac’s Chief Economist.
This is a developing story and will be updated.