Forecasting the Moves of The Fed with Barry Habib (WiM282)
The "What is Money?" Show
00:00
Do Mortgage Rates Always Follow Inflation?
As inflation rises, so do mortgage rates. As inflation subsides, so do Mortgage rates. Even this little blip here resulted in a corresponding blip in mortgage rates. The Fed not only cut rates, but what they said is now we're going to buy the bond market. We saw inflation come down and since then mortgage rates have come down. All at the same time while the Fed's raising rates.
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