The White House will take surprising approach to curb mortgage rates
This key factor has the potential to strongly influence mortgage rates and housing market demand.
When mortgage rates began to surge in 2022, it aligned with the rapid onset of inflation. However, the past few years of elevated mortgage rates have been caused by a combination of economic factors.
The Fed began interest rate hikes to discourage borrowing in an effort to stifle inflation, which raised borrowing costs across the board.
While mortgage rates are loosely associated with the federal funds rate, the 10-year treasury yield is actually a better indicator of the direction mortgage rates will go.
