Analysis
How We Got Here, A Brief History of Mortgage Rates
In this episode
We look back to the early 70s through today to show mortgage rate trends and correlations so you can better understand how markets affect mortgage rates.
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Show notes
Rates have been elevated for several years now but most don’t understand the fundamentals. We just take a look at the history of rates and inflation to put into perspective how we got where we are.
The part worth repeating
Mortgage Rates always lag behind the rate of inflation, other factors pull up or down but the long term trend always moves the way of inflation.
Common questions
What impact does the Federal Funds rate have?
Very little. The federal reserve has a dual mandate, full employment and monetary policy. Sometimes those two are at odds with each other. More important than the funds rate itself is what the Federal Reserve is trying to accomplish and what their forecast is.
Mentioned in this episode