Fed hikes interest rates, Trump fires back
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The Federal Reserve is raising interest rates again, and the effects could reach far beyond U.S. shores.
One reason why mortgage rates don't move in tandem with the Fed's rate decisions is that markets act in anticipation of whether the Fed will hike or cut rates. Today's rate increase was expected, and 10-year Treasury yields – and the mortgage rates that follow – already posted a meaningful increase in the week running up to the Fed's announcement.
The Fed's rate hike aims to control inflation but raises borrowing costs, which is expected to impact real estate and economic growth.