Mortgage ratesÃ‚Â were only modestly higherÃ‚Â today, extending the recent losing streak to its 4th straight day. Ã‚Â This keeps the average conventional 30yr fixed atÃ‚Â 4.25%Ã‚Â for top tier scenarios. Ã‚Â Before that, it averaged 4.125% for most of February. Ã‚Â Bond markets (which dictate interest rates) are taking their cues primarily from Fed rate hike expectations. Ã‚Â
More so than the Fed Funds Rate itself, mortgage rates tend to track fairly closely with Fed rateÃ‚Â EXPECTATIONS. Ã‚Â The last 2 times the Fed has hiked, this resulted in mortgage rates moving lower AFTER the Fed rate moved higher. Ã‚Â It’s fun to point out the apparent paradox, but just remember that if the Fed Funds Rate could move every day like mortgage rates, it would already be higher, and there would be no paradox.