re: 600 pts down? WTH is going on

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Now do 2000 Bush v Gore and the aftermath that ensued.

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That had essentially everything to do with the very well defined Dot Com bubble continuing to burst than it did with the election.



The Nasdaq bottom was falling out with or with an election issue.

Money is fake
Markets are manipulated

Next question.

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Money is fake Markets are manipulated Next question.

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Give us some investment advice.

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That had essentially everything to do with the very well defined Dot Com bubble continuing to burst than it did with the election.

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You think 40 plus days of an undecided president (where no one was the incumbent) didn't play a major factor in the stock market tanking within those 40 plus days?????? My God this place has lost its ever loving minds. Nice revisionist history attempt Slackster.

I remember Trump stating if Biden were elected in 2020, the market would crash like never before. Never happened.

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Good thing we got that .5 cut so mortgage rates would dro...

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Mortgage rates price in the Fed’s anticipated actions. They move prior to…

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Taking an extra month to figure out who won was meaningless to the market.

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I didn't think anyone could be this dumb. Congrats, you managed to make these other 2 losers actually look competent by comparison. 40 days of an undecided president in 2000 was detrimental to the stock market. Some of you have the functioning IQ and critical thinking skills of a wet noodle.

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40 days of an undecided president in 2000 was detrimental to the stock market.

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Based on what? You saying it over and over again?

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Mortgage rates price in the Fed’s anticipated actions. They move prior to…

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So mortgage rates went down prior to the .5 cut because they priced it in due to anticipating it but now are going back up because they are pricing in the anticipated extra .5 in cuts by the end of the year?

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So mortgage rates went down prior to the .5 cut because they priced it in due to anticipating it but now are going back up because they are pricing in the anticipated extra .5 in cuts by the end of the year?

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You're little passive-aggressive smily face is itself laughable given you aren't nearly as knowledgable/smart as you think you are.

Mortgage rates are tied to the 10-year Treasury yield more so than the Federal Funds rate. You do know this, right?

They are going back up because of stronger than expected economic data places doubt on the pace of follow on cuts.

In general (I say this because there are other elements that play into it as well), yields rise/fall based on sentiment/outlook/confidence. If confidence is low, then people move into safer investments like Treasuries; more demand = price goes up = yield goes down = mortgage rates go down. If confidence is high, then people move away from treasuries and into alternatives; less demand = price goes down = yields go up = mortgage rates go up.

Save the smugness and go get your fricking shine box.

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When the Fed cut interest rates last month, many hoped it would kick-start the frozen housing market. Mortgage rates track the 10-year US Treasury yield, which was expected to fall in anticipation of further rate cuts. But recent economic data has looked stronger than expected, which has shifted the market’s expectations, sending bond yields higher.

For example, the government’s latest batch of employment data released earlier this month showed that monthly job growth in September was much better than expected. More recently, a separate report on retail spending released last week showed that consumer demand, a key driver of the US economy, remains solid. Further data like that could slow the pace of rate cuts.

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Although mortgage rates aren’t directly tied to the Fed’s benchmark federal funds rate

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the 30-year-fixed mortgage rate is somewhat benchmarked by the 10-year Treasury bond yield, with the 30-year fixed-rate mortgage typically higher than the 10-year Treasury yield.

The difference between the two is known as the mortgage spread.

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Fixed-rate mortgages — the most popular type of home loan — don’t mirror the federal funds rate, however; they track the 10-year Treasury yield (more on that below).

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Fixed-rate mortgages are tied to the 10-year Treasury yield. When that goes up or down, fixed-rate mortgage rates follow suit.

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We have seen in recent months mortgage rates coming down because the market was expecting this to happen.

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The Federal Reserve is poised to cut interest rates starting in September.

But expectations for the Fed to move have already driven mortgage rates lower, and borrowing costs could fall further ahead of the central bank taking action.

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Douglas Duncan, chief economist at Fannie Mae, told Yahoo Finance in an interview that when "the 10-year [Treasury] comes down, the mortgage rate typically comes down with it. Maybe not as far, maybe sometimes further. It depends on what else is happening in the market.

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Duncan explained that as bond traders have already priced in a rate cut, mortgage rates have also come down.

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"The 30-year mortgage rates can continue to fall ahead of actual Fed rate cuts, as they are priced off of 5-10-year bonds, not the Fed Funds Rate,"

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Cohn explains that changes in the federal funds rate don’t directly affect mortgage rates. Instead, they tend to be influenced by the bond market and the yields paid to investors. Bonds, in turn, are influenced by the economy and labor market's overall strength.

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Because the reduction in rates was so widely anticipated, many lenders have already priced it into their loan offerings. Mortgage rates have dropped by more than half a percentage point over the past six weeks based on signs of a slowing economy and the expectation of a rate cut this month.

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This month’s widely anticipated Federal Reserve rate cut won’t lower mortgage rates as much as seen over the summer.
The rates you’re seeing today largely account for a September Fed cut already.
In general, the rates on 30-year mortgages are more closely tied to investor sentiment than Fed decisions.

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The Federal Reserve is poised to cut rates at its Sept. 18 meeting — but don’t expect the move to send mortgage rates plummeting.

That’s because the mortgage market has already incorporated the Fed’s widely anticipated cut into the rates borrowers are paying for home loans today.

“I think a lot of people are looking at the September Fed meeting thinking that there’s going to be a big stair step down in rates,” says Jerimiah Taylor, chief real estate officer at Movoto, a real estate search site. “The reality is that it’s already priced in. You’re getting disproportionate movement in mortgage rates, which means the market is already starting to price in Fed cuts.”

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The significant move in rates illustrates the reality that fixed mortgage rates are set not by the Fed, but by investors. The most important benchmark for mortgage rates is the 10-year Treasury rate. Mortgage rates tend to move up and down with that rate, which itself bounces around with economic sentiment.

“Mortgage rates move with the bond market, and if the Fed cuts rates, that is an indication that the economy is weakening and will support lower yields and lower mortgage rates,” says Melissa Cohn, regional vice president of William Raveis Mortgage. “Remember, mortgage rates are not tied directly to the Fed funds rate. They move with the bond market, which moves on economic data.”

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