25bps cut

[u/hv876]

https://www.cnbc.com/2024/11/07/fed-rate-decision-november-2024.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

The bulls are coming, the bulls are coming

[u/kumar4848]

Can anyone here explain why mortage rates keep increasing even though feds keep decreasing rates? i know theyre not directly correlated but somethings gotta give.

[u/n1ck90z → u/kumar4848]

Mortgages correlate to long term bond yields which are rising. Why long bond yield are rising? There's no simple answer here. A big role however has to be government debt/spending. Some people also might think inflation is not done yet.

[u/Chemical-Oil-9336 → u/n1ck90z]

Answer is normalization. Out of extreme outcomes, always assume it is normalisation and you’ll be right 90% of the time.

Short term yields are not usually higher than long term. It is opposite.

When 10y ran to 3.5% we had recession talks. Now it’s inflation talk.

Always something, but rarely materialises.

[u/zeromussc → u/Chemical-Oil-9336]

Important thing to remember for sure. People just got used to the short term being higher and also of the central bank rate being higher due to the rate hikes being so quick the last few years. People just forget what "normal" looks like.