Why Mortgage Rates Are Rising Despite Fed Rate Cuts

Reported 22 days ago

Despite the Federal Reserve's recent decision to cut interest rates, U.S. mortgage rates have risen for the fourth consecutive week, reaching 6.54% as housing demand declines. Although the Fed's cut led to a temporary dip in mortgage rates earlier, it failed to revitalize the housing market, with existing home sales dropping and mortgage applications declining to their lowest level since July. Analysts attribute the rise in mortgage rates to strong economic data rather than the Fed's policy, indicating that ongoing government borrowing may further impact the availability of mortgage funds.

Source: YAHOO

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