The Real Reason Mortgage Rates Aren't Falling
Why Mortgage Rates Rose Despite Federal Reserve Rate Cuts
Understand the four critical factors governing the 10-Year Treasury yield, which directly dictates your mortgage rate, even when the Federal Reserve cuts borrowing costs.
Short Summary
- Mortgage rates decouple from Federal Reserve actions because the 10-Year Treasury yield acts as the primary benchmark for lenders.
- Lender pricing weighs your personal qualifications (credit score, down payment) secondarily to the market rate set by long-term government borrowing costs.
- Four major forces—Fed rates, economic growth, investor fear, and inflation outlook—constantly shift Treasury yields, creating market imbalance. This overview explains why recent Federal Reserve interest rate reductions did not lower mortgage costs. It details the primary driver—the 10-Year Treasury yield—and the four macro factors that move this critical benchmark.
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Top Comments (10)
Glad you covered this! I remember a mortgage broker telling me the mortgage rate was not tied to the Fed, but the 10 year note. I kept thinking the mortgage rate was not going to fall as fast as people hoped.
I don't know how you manage to pump out so much information but thanks for help!
I’m living with my in-laws while we supposed to be looking for a home. Everyone I talk to always says “The interest rates are falling” ya well, I ain’t buying a house for 400k that’s only worth 200k because interest dropped .25 percent. It’s common sense. Buyers control prices. Stand strong fellow folks who are fed up with pricing. Hold fast.
Who is more confused now
My mortgage rate did go down. Navy Federal is currently offering 5.37% on 30 year mortgage.
Make sure you shop around. One bank in town was 8%. Went across town at was at 5.875.
Register for my free masterclass & get Market Briefs as a bonus: https://briefs.finance/oqw WARNING: LOOKOUT FOR SCAMS IN THE COMMENTS! There are many fake accounts impersonating me, and there are many bots promoting fake/scam investments. I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture!
So basically we will have to wait until the Fed funds rate is significantly lower to see the ten year yield drop significantly
Best 12min 42sec I’ve spent. Appreciate the education
Buyers have smartened up’ buyers that understand real estate are not moved by interest rates, the cost of these homes are beyond high’ making the loan amount ridiculous to pay back- Who wants to be house poor’
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Top Comments (10)
Glad you covered this! I remember a mortgage broker telling me the mortgage rate was not tied to the Fed, but the 10 year note. I kept thinking the mortgage rate was not going to fall as fast as people hoped.
I don't know how you manage to pump out so much information but thanks for help!
I’m living with my in-laws while we supposed to be looking for a home. Everyone I talk to always says “The interest rates are falling” ya well, I ain’t buying a house for 400k that’s only worth 200k because interest dropped .25 percent. It’s common sense. Buyers control prices. Stand strong fellow folks who are fed up with pricing. Hold fast.
Who is more confused now
My mortgage rate did go down. Navy Federal is currently offering 5.37% on 30 year mortgage.
Make sure you shop around. One bank in town was 8%. Went across town at was at 5.875.
Register for my free masterclass & get Market Briefs as a bonus: https://briefs.finance/oqw WARNING: LOOKOUT FOR SCAMS IN THE COMMENTS! There are many fake accounts impersonating me, and there are many bots promoting fake/scam investments. I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture!
So basically we will have to wait until the Fed funds rate is significantly lower to see the ten year yield drop significantly
Best 12min 42sec I’ve spent. Appreciate the education
Buyers have smartened up’ buyers that understand real estate are not moved by interest rates, the cost of these homes are beyond high’ making the loan amount ridiculous to pay back- Who wants to be house poor’