The central bank lowered its benchmark rate by a quarter-percentage point Thursday, following its half-point cut in September.

But the average rate on a 30-year fixed mortgage has gone in the opposite direction since the Fed’s first cut, rising by more than half a percentage point to 6.79% this week, Freddie Mac said Thursday. It might keep climbing, tracking the recent rise in the 10-year Treasury yield.

The Fed wants to push down the cost of borrowing money for homes, cars and other purchases. But mortgage rates aren’t determined by the Fed, they are heavily influenced by Treasury yields, which go up and down based on economic expectations. And the outlook for growth is strong, keeping both yields and mortgage rates high.

Yields have also been rising since President-elect Donald Trump’s victory. Investors think that Trump’s tax-cut heavy agenda would add to the deficit and increase economic growth and inflation. That would put upward pressure on Treasury yields. Trump has also promised higher tariffs, which could further add to inflation.

“Higher for longer, unfortunately, for all of us is going to be a thing, even in the face of Fed rate cuts,” said John Toohig, head of whole-loan trading at Raymond James. “You would need to see the economy show some real signs of economic weakness to see rates truly drop.”

https://www.wsj.com/economy/housing/mortgages-fed-interest-rate-cuts-7e5345b8

(http://www.autoadmit.com/thread.php?thread_id=5629579&forum_id=2#48306281)

Boomers talk to me about their original 15% rate (but they're all <3% now)

(http://www.autoadmit.com/thread.php?thread_id=5629579&forum_id=2#48306356)