Recent mortgage rates?

Question

despite the low federate rates, the mortgage rates have hiked recently. Can someone explain what other factors are affecting the rates and how? thanks.

Answer 1

Long term bond rates and risk assessment.  Those are more relevant than the federal reserve fund rates.

Answer 2

mortgage rates are set for long term. the fed has chosen to create long term inflation with its senseless politics. so mortgage rates go up, accounting for future inflation.

Answer 3

Sometimes when the fed lowers rates it tends to send mortgage rates upward.  Most mortgage rates are based on the LIBOR index, not the Prime Rate so even though consumers think they're going to get a break they get a higher rate.  It is important to note that for large mortgage companies (like the one I worked for until layoffs started) there is a "rate sheet" and the borrower's credit history, amount of the loan compared to the value of the home and the amount they wish to borrow are all tied to a specific rate.  The loan officer can't adjust that rate except if you want to pay more points up front to buy the rate down