A few weeks ago I wrote about a blog post from the Federal Reserve. In their blog post, they had explained why the rate hike shouldn’t impact long-term mortgage rates. And they were right. In fact, we’ve seen exactly the opposite happen. We’ve had weeks and weeks of decreasing rates on long-term, fixed-rate mortgage rates. So, what’s going on here? Well, long-term interest rates don’t follow the Fed funds rate, but they do track to 10 year Treasury bonds. And investors are flooding the bond market.
