BiggerPockets Daily Inside the Fed's Rate Cut: What It Means for Your Money in 2025
Dec 20, 2024
Dive into the complexities of the Federal Reserve's latest rate cut and its implications for property investors. Discover how a rate cut doesn't guarantee cheaper mortgages and the critical link between inflation, mortgage rates, and 10-year treasury yields. Gain insights on why waiting for lower rates could be a costly mistake. Explore the expected rise in property values despite high borrowing costs, helping you navigate today's challenging real estate landscape with confidence.
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Fed Rate Cut & Mortgages
- The Fed's rate cut doesn't automatically mean cheaper mortgages.
- Mortgage rates are influenced more by the 10-year treasury yield.
10-Year Treasury Yield
- The 10-year treasury yield is a benchmark for mortgage rates.
- Supply and demand in the bond market dictate its movements.
Fed Funds Rate Influence
- The Fed funds rate indirectly influences mortgage rates through a chain reaction.
- Lowering this rate signals intent for economic growth and cooling inflation.