Why Mortgage Rates Went Up After the Fed's Big Cut
Odd Lots21 Okt 2024

Why Mortgage Rates Went Up After the Fed's Big Cut

On September 18, the Federal Reserve kicked off the cutting cycle by reducing overnight rates by 50 basis points. Since then, mortgage rates have gone higher. This is not obviously an intuitive thing to happen. The point of a rate cut is to stimulate the economy by reducing the cost to borrow. And people generally know that interest rates and mortgage costs are linked. Well, it turns out they are linked, but not directly. And certainly not in some linear manner. On this episode of the podcast, we speak with Tom Graff, the CIO of the wealth management firm Facet, and a long-time trader in the fixed income space. We talk about the factors that influence mortgage rates, why the spread between a 30-year fixed and a 10-year Treasury fluctuates over time, and how rate cuts can be priced in before they even happen. We also talk about what we'll need to see for mortgage rates to move sustainably lower.

Read More:
US Mortgage Rates Climb to 6.52%, Highest Since Early August
Why a 'Broken' Mortgage Market Is Keeping Borrowing Rates Extra High

See omnystudio.com/listener for privacy information.

Episoder(1189)

36: How A Quant Saw Huge Changes That Took Place on Wall Street

36: How A Quant Saw Huge Changes That Took Place on Wall Street

Emanuel Derman was one of the pioneers of quantitative finance, having gone from studying physics to working on Wall Street in 1985. His memoir, My Life as a Quant, is a must-read book that tracks the...

11 Jul 201629min

35: There Was a Huge Opportunity The Night of the Brexit Vote

35: There Was a Huge Opportunity The Night of the Brexit Vote

In the runup to the Brexit vote polls were mixed. Some showed remain winning. Others showed leave winning. Nonetheless, markets, pundits, and bookmakers always seemed to be pretty sure that remain was...

1 Jul 201622min

34: The Highway Built by Oil Markets and Political Intrigue

34: The Highway Built by Oil Markets and Political Intrigue

On this week's episode we take a trip down one particular road on the Gulf peninsula to explore how sudden market shocks — and the political discord that sometimes comes with them — can help shape the...

27 Jun 201620min

33: How ``Fed Watching'' Became a Thing

33: How ``Fed Watching'' Became a Thing

When Federal Reserve Chair Janet Yellen speaks, the world watches — and one group watches especially closely. ``Fed watchers'' have made a career out of analyzing and dissecting the words and actions ...

20 Jun 201625min

32: The Amateur Activists Who Took On The Foreclosure Machine

32: The Amateur Activists Who Took On The Foreclosure Machine

The Great Recession was characterized by a historic and gigantic wave of foreclosures all around the country. Left and right, people were being removed from their homes. But because of the explosion o...

13 Jun 201626min

31: Welcome Aboard Starship Bank

31: Welcome Aboard Starship Bank

David Hendler made his reputation as a bank analyst at the independent research firm CreditSights Inc., foreseeing many of the problems that led to the financial crisis of 2008 and vocally criticizing...

6 Jun 201619min

30: How Finance Took Over the World

30: How Finance Took Over the World

The U.S. spends 8 percent of its GDP on finance -- twice the amount it did 40 years ago, according to economist Brad DeLong. That figure set off a wave of soul-searching recently as commentators asked...

27 Mai 201623min

29: How an Old-School Chess Shop Survives in Modern New York

29: How an Old-School Chess Shop Survives in Modern New York

At a time when retail sales are dominated by online behemoths like Amazon Inc. and big chain stores, independent brick-and-mortar shops are under growing pressure. Imad Khachan defies the odds to run ...

23 Mai 201624min

Populært innen Business og økonomi

stopp-verden
lydartikler-fra-aftenposten
dine-penger-pengeradet
rss-penger-polser-og-politikk
rss-borsmorgen-okonominyhetene
e24-podden
pengepodden-2
tid-er-penger-en-podcast-med-peter-warren
pengesnakk
livet-pa-veien-med-jan-erik-larssen
finansredaksjonen
utbytte
stormkast-med-valebrokk-stordalen
morgenkaffen-med-finansavisen
lederpodden
rss-markedspuls-2
rss-sunn-okonomi
rss-pa-konto
liberal-halvtime
stockup