Mortgage rates unlikely to cool in August
10 days ago - By Wood TV
Mortgage rates will likely rise in August as the Federal Reserve continues to yank interest rates higher.
The Fed's chairman, Jerome Powell, has repeatedly said that the central bank's "overarching focus" right now is to slow inflation. The Fed applies the brakes on inflation by raising short-term interest rates. When the central bank tugs short-term rates higher, mortgage rates usually rise, too.
In fact, the Fed has targeted mortgage rates specifically. During the depths of the pandemic, the central bank bought government and mortgage debt, pushing mortgage rates to record lows. Now, the...
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