Anyone Who Tells You They Know What Happens Next For Rates is Lying

Friday saw mortgage rates move back up near the highest levels of the week, and thus the highest levels of the past 3 months. Thus ends another week where mortgage rates end higher despite a Fed rate cut. We've beaten this horse to death, but here are the two key reasons Fed rate cuts don't necessarily result in lower mortgage rates, in as few words as possible:  Different Kinds of Rates Fed Funds Rate = loans of 24 hours or less.  Mortgage rates = loans up to 30 years.  Rates can have vastly different behavior when they apply to loans of vastly different time frames Vastly different levels of timeliness Fed only meets to consider rate cuts 8 times a year whereas mortgage rates move daily.  As such, mortgage rates can get in position well in advance