"There was a possibility that mortgage rates would rise after the September rate cut, but we didn't expect them to rise this much," Chen Zhao, Redfin's economic research lead, said in a release on Thursday.
"Essentially, the Fed controls short-term rates. Longer-term rates, for 10-year Treasury bonds are set in global bond markets, based on inflation expectations and what investors believe the Fed is going to do further into the future," as Axios' Neil Irwin laid out last month.
"In August, investors believed the Fed was going to cut rates a few times to stimulate the economy. At the time, inflation was falling and job growth appeared to be slowing down. So the yield on the 10-year fell and mortgage rates fell, too."
"The uncertainty sent 10-year yields back up - and mortgage rates, too. The intrigue: Speaking of uncertainty, the election plays a role here as well."
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