Article Analysis:
Highlights:
1. The Federal Reserve cut interest rates for the third time in 2024, but mortgage rates increased instead of decreasing as expected.
2. The 30-year fixed rate mortgage spiked to 6.72% for the week ending Dec. 19, shortly after the Fed’s decision, indicating a significant rise from the previous week.
3. The Fed’s dot plot showed fewer signs of more rate cuts in 2025, which impacted the bond market and led to a surge in mortgage rates.
Summary:
The article discusses how despite the Federal Reserve cutting interest rates, mortgage rates increased instead of declining. The 30-year fixed rate mortgage saw a spike to 6.72%, signaling a noticeable rise. The Fed’s dot plot revealed a reduction in its projected rate cuts for 2025, causing concerns in the bond market and contributing to the surge in mortgage rates.
Editorial content by Blake Sterling
