Episode 4
Why Doesn't Your Mortgage Rate Follow the Fed?
The Fed's headline rate and a thirty-year mortgage price different kinds of borrowing. Discover how market expectations, inflation, mortgage-backed investments and the details of a loan help explain why the numbers don't move together.Sources:https://www.dallasfed.org/research/economics/2026/0507https://www.consumerfinance.gov/owning-a-home/explore-rates/https://www.consumerfinance.gov/ask-cfpb/how-should-i-use-lender-credits-and-points-also-called-discount-points-en-136/
Show notes
The Fed's headline rate and a thirty-year mortgage price different kinds of borrowing. Discover how market expectations, inflation, mortgage-backed investments and the details of a loan help explain why the numbers don't move together.
Sources:
https://www.dallasfed.org/research/economics/2026/0507
https://www.consumerfinance.gov/owning-a-home/explore-rates/
https://www.consumerfinance.gov/ask-cfpb/how-should-i-use-lender-credits-and-points-also-called-discount-points-en-136/