<\/p>\n
\n The average rate on the 30-year fixed-rate mortgage increased by two basis points to 6.35% for the week ending September 25, as reported by Zillow and provided to NerdWallet. A basis point is defined as one one-hundredth of a percentage point.<\/span>\n <\/p>\n<\/p><\/div>\n \n This marks a notable shift from the previous two weeks, which experienced double-digit basis point declines leading up to the Federal Reserve\u2019s September meeting.<\/span>\n <\/p>\n<\/p><\/div>\n \n While the Fed <\/span> \n On September 16, the average 30-year APR fell to just above 6%, a level not seen in nearly a year, right before the Fed’s announcement.<\/span>\n <\/p>\n<\/p><\/div>\n \n As expected, the Fed cut rates by 25 basis points. However, shortly after, <\/span> \n Mortgage rates are influenced by a variety of economic factors. Lenders often react to new reports while also anticipating future data. Following the Fed meeting, it was unlikely that rates would drop immediately, as lenders had already adjusted them downward in anticipation of the committee’s decision.<\/span>\n <\/p>\n<\/p><\/div>\n\n The Fed cut the federal funds rate, but mortgage rates are up \u2014 what gives?<\/span>
\n <\/h2>\n<\/p>\n
\n
\n doesn\u2019t directly set mortgage rates<\/span><\/span>
\n <\/a>
\n , APRs generally move in line with lenders’ expectations of the federal funds rate. Mortgage rates <\/span>
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\n dropped last week<\/span><\/span>
\n <\/a>
\n as lenders anticipated a reduction in the federal funds rate.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n mortgage rates began to rise again<\/span>
\n <\/a>
\n . This raises the question: why are lenders increasing mortgage rates if the Fed’s actions were as anticipated?<\/span>\n <\/p>\n<\/p><\/div>\n