Published Oct 21, 2024

Why Mortgage Rates Went Up After the Fed's Big Cut

Facet's Tom Graff delves into the paradox of rising mortgage rates amid Federal Reserve cuts, dissecting the roles of treasury yields, negative convexity, and market dynamics in shaping current mortgage market challenges.

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- What is the impact of interest rates on valuations?
  Asked by 31 people
- How did the 2008 financial crisis influence the economy?
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- How did the financial crisis happen?
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- What is the math behind mortgages?
  Asked by 7 people
- When does it make sense to refinance a mortgage?
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- What caused the 2008 financial crisis?
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- What are the effects on the economy of cutting federal funds rates?
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- How do government programs affect bonds?
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- What does the Fed adjusting interest rates actually do?
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- Should investors buy low and sell high?
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Why Mortgage Rates Went Up After the Fed's Big Cut

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Questions from this episode

Episode Highlights

Mortgage Rate InfluencersTom Graff, CIO of Facet, unravels the complexities behind rising mortgage rates despite the Federal Reserve's rate cuts. He explains the intricate relationship between mortgage bonds, treasury yields, and market behaviors that influence these rates.

Mortgage Rate Influencers

Mortgage Market ChallengesTom Graff explores the intricacies of the mortgage market, focusing on refinancing challenges, negative convexity, and market infrastructure. He explains how these factors contribute to the current high mortgage rates, despite the Federal Reserve's rate cuts.

Mortgage Market Challenges

Mortgage Rate DynamicsMortgage rates are influenced by a complex interplay of factors beyond direct Federal Reserve rate cuts. Tom Graff explains how economic expectations and market dynamics shape these rates, often in non-linear and unpredictable ways.

Mortgage Rate Dynamics

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