Where do Mortgage Rates come from? What makes them go up??

What if I told you the Fed ISN'T raising mortgage rates? In FACT, when the Fed raises rates, often mortgage rates come DOWN? Do you know where rates come from and what makes them go up?

Market Update 07.15.25

Weekly Real Estate & Mortgage NEWS - 07.15.25✅ Move over Florida: Wyoming is the new retirement hotspot. (NMP) ✅ Fannie Mae chairman ‘encouraged’ by chatter Powell may consider quitting. (FHFA)  ✅ White House accuses Powell of mismanaging the Fed, citing renovation. (theHill)    Inflation, Interest Rates & What’s Ahead for Housing What the June CPI Report Means for You and Your BuyersThe June Consumer Price Index (CPI) report just dropped, and it's offering a clearer picture of where inflation—and possibly interest rates—are headed. While tariffs were expected to push prices higher on things like groceries, cars, and energy, the data shows inflation is still relatively stable.Here’s what you need to know, and what this could mean for the real estate market.Inflation is Easing—But Not EverywhereThe headline CPI rose 0.29% month-over-month and 2.67% year-over-year, a modest increase from 2.35% the previous month. Core CPI, which strips out food and energy, rose 0.23% for the month and 2.93% year-over-year—showing steady moderation.Notable highlights:New car prices increased just 0.2% over the past yearUsed car prices are down 0.7% month-over-month and up 2.8% year-over-yearFood prices rose only 0.3% for the month and 3.0% year-over-yearShelter—still the biggest driver of inflation—rose 3.80% year-over-year, down slightly from 3.86%, with both rent and owner’s equivalent rent easing modestly.What the Fed Might Do NextWith inflation cooling and economic pressure building, the Federal Reserve is increasingly positioned to consider rate cuts—possibly as early as this fall.What does that mean for your clients?Lower rates will improve affordabilityBuyer purchasing power will increaseDemand could pick up quickly when rates dropThis creates a window of opportunity for today's buyers that may close when the market shifts.What Realtors Should Know (and Share)Now may be the best moment for motivated buyers:Inventory is higherSellers are still flexibleMortgage rates remain elevated—but not for longWhen rates fall, competition is likely to return. Multiple offers, fewer concessions, and higher prices could follow.Talking Point for Your Clients“Inflation is cooling and rates may soon follow—but when they do, competition will heat up. Acting now could mean more negotiating power and less buyer pressure.”

My WHY – the reason why HOME is so important. And the reason I do what I do.

My passion for helping people own their own home runs deep... this is my story and WHY I do what I do. #liveislivedinahome