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FED Funds Rate vs. Mortgage Rates: Understanding the Disconnect

In the final quarter of 2024, the Federal Reserve cut the federal funds rate twice, stirring excitement among potential homebuyers who anticipated a drop in 30-year mortgage rates. However, mortgage rates did not follow suit, leaving many puzzled. This outcome, while counterintuitive, aligns with how fixed mortgage rates are influenced by broader market dynamics. The […]

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