The Fed’s inflation story just changed AGAIN. 😳
Chicago Fed President Austan Goolsbee says strong demand may now be contributing to inflation, not just oil, tariffs, and other supply shocks.
That matters because demand-driven inflation gives the Fed a much clearer reason to keep raising rates.
But here’s what homebuyers need to understand:
🏠 A Fed rate hike does NOT automatically mean higher mortgage rates.
Mortgage rates follow the bond market much more closely. If investors believe the Fed is getting serious about inflation, long-term Treasury yields can actually fall.
Stop watching the Fed rate alone.
Watch inflation. Watch the 10-year Treasury. Watch the bond market.
That’s where mortgage rates are really being decided.
Have questions about buying, refinancing, or tracking your mortgage rate in California?
Call or text 925-885-1919, request a video or phone appointment, enroll in free RateAnalyzer rate monitoring, or start our Quick Application.
Russell McDonald | NMLS 290837 | Broker CA DRE 01150730
Wymac Capital Inc | NMLS 18766 | Broker CA DRE 01121628
Real Estate Broker – CA Dept of Real Estate