October 21, 2024· 35 min

Why Mortgage Rates Went Up After the Fed's Big Cut

Tom Graff

Orality

Model

86%

Highly oral (epic poetry, sermons, hip-hop)

Speaker Breakdown

HostJoe Weisenthal(1,757 words)

M:29%

HostTracy Alloway(3,837 words)

M:28%

GuestTom Graff(1,300 words)

M:93%

Oral Indicators

Agonistic23%

very, definitely, obviously

Engagement65%

you, our, your

Memory Aids100%

listen, now, so

Repetition100%

right (79x), like (78x), mortgage (61x)

Parallelism88%

So join us for an evening of p..., So you can find the link to bu..., So definitely come join us Nov...

Sound Patterns100%

106 question(s), alliteration: "markets move", alliteration: "barclays brief"

Formulaic Phrases5%

you know what, i mean

Literate Indicators

Hedging8%

perhaps, could, probably

Passive Voice3%

are backed, be reminded, be refinanced

Abstract Nouns17%

investment, election, connection

Subordination10%

because, since, while

Sentence Length24%

Avg: 11.0 words/sentence

Word Complexity46%

investment, analyze, anticipate

Academic Markers4%

according to

Impersonal Style35%

499 personal pronouns found

Descriptive Style79%

daily, definitely, recently

Description

On September 18, the Federal Reserve kicked off the cutting cycle by reducing overnight rates by 50 basis points. Since then, mortgage rates have gone higher. This is not obviously an intuitive thing to happen. The point of a rate cut is to stimulate the economy by reducing the cost to borrow. And people generally know that interest rates and mortgage costs are linked. Well, it turns out they are linked, but not directly. And certainly not in some linear manner. On this episode of the podcast, we speak with Tom Graff, the CIO of the wealth management firm Facet, and a long-time trader in the fixed income space. We talk about the factors that influence mortgage rates, why the spread between a 30-year fixed and a 10-year Treasury fluctuates over time, and how rate cuts can be priced in before they even happen. We also talk about what we'll need to see for mortgage rates to move sustainably lower. Read More: US Mortgage Rates Climb to 6.52%, Highest Since Early August Why a 'Broken' Mortgage Market Is Keeping Borrowing Rates Extra High See omnystudio.com/listener for privacy information.

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