{"id":205352,"date":"2021-03-18T16:06:00","date_gmt":"2021-03-18T13:06:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-why-mortgage-rates-keep-rising-even-though-the-fed-plans-to-keep-interest-rates-low\/"},"modified":"2021-03-18T16:06:00","modified_gmt":"2021-03-18T13:06:00","slug":"heres-why-mortgage-rates-keep-rising-even-though-the-fed-plans-to-keep-interest-rates-low","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-why-mortgage-rates-keep-rising-even-though-the-fed-plans-to-keep-interest-rates-low\/","title":{"rendered":"#\n  Here\u2019s why mortgage rates keep rising \u2014 even though the Fed plans to keep interest rates low"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bbe6f566a3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bbe6f566a3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-mortgage-rates-keep-rising-even-though-the-fed-plans-to-keep-interest-rates-low\/#Mortgage_rates_are_now_at_the_highest_point_since_June_and_could_go_even_higher_even_if_the_Federal_Reserve_doesnt_change_its_policy\" >Mortgage rates are now at the highest point since June and could go even higher even if the Federal Reserve doesn\u2019t change its policy<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-mortgage-rates-keep-rising-even-though-the-fed-plans-to-keep-interest-rates-low\/#Jacob_Passy\" >Jacob Passy<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Here\u2019s why mortgage rates keep rising \u2014 even though the Fed plans to keep interest rates low<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Mortgage_rates_are_now_at_the_highest_point_since_June_and_could_go_even_higher_even_if_the_Federal_Reserve_doesnt_change_its_policy\"><\/span>\n  Mortgage rates are now at the highest point since June and could go even higher even if the Federal Reserve doesn\u2019t change its policy<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000203098\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The Federal Reserve is planning to stay the course in keeping interest rates low \u2014 but that isn\u2019t necessarily music to home buyers\u2019 ears.<\/p>\n<p> On Wednesday, the Federal Reserve signaled that it won\u2019t raise interest rates until 2023 at the earliest, even though some observers have voiced concerns about rising inflation. As of now, seven of the 18 Fed officials expect a rate hike to come in 2023, while four think one could h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en next year.<\/p>\n<div class=\"paywall\">\n       Investors happily greeted the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>, with the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.24%<\/bg-quote><br \/>\n       and the S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.57%<\/bg-quote><br \/>\n       both notching intraday records Wednesday following the Fed\u2019s announcement. Whether the Fed\u2019s policy is similarly auspicious for home buyers or people looking to refinance their existing mortgages remains to be seen.<\/p>\n<p>Since the start of the year, the benchmark rate on the 30-year fixed-rate mortgage has risen more than 40 basis points, according to data from Freddie Mac. <\/p>\n<p>As of Thursday, the 30-year fixed-rate mortgage averaged 3.09%, up four basis points from the week earlier, Freddie Mac<br \/>\n        FMCC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202741363\/delayed\" class=\"negative\">-0.55%<\/bg-quote><br \/>\n       reported. It\u2019s the highest level that the benchmark mortgage rate has hit since June of last year.<\/p>\n<p>Meanwhile, the average rates on the 15-year fixed-rate mortgage and the 5-year Treasury-indexed adjustable-rate mortgage both increased by two basis points, to 2.4% and 2.79% respectively.<\/p>\n<p>\u201cThe Fed funds rate itself has no impact on mortgage rates,\u201d said Tendayi Kapfidze, chief economist at LendingTree<br \/>\n        TREE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204207971\/composite\" class=\"negative\">-3.34%<\/bg-quote><span>,<\/span><br \/>\n       in explaining the Fed\u2019s policy decision didn\u2019t stem the rise in mortgage rates this week. The Federal Reserve controls short-term interest rates. But mortgage rates are long term rates, and mortgage lenders take their cues from the bond market when setting the rates they charge to borrowers.<\/p>\n<p>In particular, mortgage rates roughly track the direction of the 10-year Treasury<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">1.750%<\/bg-quote><span>.<\/span><br \/>\n       But even that relationship isn\u2019t foolproof. \u201cThis relationship can vary,\u201d Kapfidze said. \u201c10-yr Treasury rates were on an upward trend from August 2020, but mortgage rates were still falling until February.\u201d<\/p>\n<p>Mortgage rates have risen quickly in recent weeks, reaching the highest level since July, as investors grew increasingly concerned about inflation. With Americans now receiving the stimulus checks approved as part of the $1.9 trillion American Rescue Plan, some analysts expect people to rush out and spend that money, causing prices to go up for consumer goods and services.<\/p>\n<p>Still, the Fed\u2019s stance and policy decisions could have some influence on mortgage rates, even if the central bank doesn\u2019t control them directly. Since the start of the pandemic, the Federal Reserve has ramped up its purchases of mortgage-backed securities in an effort to pump much needed liquidity into the market. Those purchases helped to push rates lower.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cReaffirming its commitment to ongoing asset purchases while acknowledging that a tapering is on the horizon at some point \u2014 likely pretty far off \u2014 should help slow the rise of mortgage rates,\u201d said Danielle Hale, chief economist at Realtor.com. Hale noted that she expects the overall upward trend in mortgage rates to continue.<\/p>\n<p>But if the Fed reverses its policy regarding mortgage-backed securities, rates could quickly rise as lenders face liquidity constraints. Alternatively, if the Fed were to opt to ramp up its purchases of 10-year Treasury notes to stem long-term rates, then mortgage rates could drop, Kapfidze said.<\/p>\n<p>Either way, mortgage rates remain very low by historical standards even if they\u2019re now above the 3% mark, and industry experts anticipate that demand for mortgages will remain strong.<\/p>\n<p>The Mortgage Bankers Association \u201ccontinues to see a very strong housing market, with mortgage applications to buy a home increasing, even as refinance demand wanes,\u201d said Mike Fratantoni, the trade organization\u2019s chief economist. \u201cWhile mortgage rates are likely to move somewhat higher, the purchase market remains on track for a record year.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jacob Passy\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jacob_Passy\"><\/span>Jacob Passy<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D3195AC888A8%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Here\u2019s why mortgage rates keep rising \u2014 even though the Fed plans to keep interest rates low &#8221; Mortgage rates are now at the highest point since June and could go even higher even if the Federal Reserve doesn\u2019t change its policy The Federal Reserve is planning to stay the course in keeping interest&#8230;<\/p>\n","protected":false},"author":1,"featured_media":196083,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-205352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/205352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=205352"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/205352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/196083"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=205352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=205352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=205352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}