The Fed doesn’t want long-term mortgage interest rates to rise. At least, that’s the conclusion we draw from a blog post they released, Monday. The post goes to great lengths to draw the conclusion that their recent rate hike shouldn’t affect long-term mortgage rates. To be sure, it will affect short term, adjustable rate mortgages, but their argument is that long-term mortgage (30-year fixed) rates are more tied to long-term treasury rates, which in turn are tied more to Fed signalling than to actual rate hikes.
