Have fun with this one: The Fed hikes, and mortgage rates fall. True. And it’s not the first time! Long-term rates have fallen after each of the three increases in the cost of money since the election.
Thirty-year fixed rate mortgages are a closing-cost argument below 4.00 percent, and the 10-year T-note is down to 2.15 percent.
Before the whys and wherefores, get one thing straight: If it were not for the Fed marching the overnight rate upward, long-term rates would be falling more — maybe a lot, a half-percent or more from here, unwinding the entire post-election rise and then some.