10/16/2026
š” REAL ESTATE MARKET TALK: Let's Talk Interest Rates!
Let's drill into mortgage interest rates. There is a lot of confusion about what makes them go up and down, so let's break it down!
š The Federal Reserve does NOT directly set mortgage interest rates. The Fed sets a benchmark rate that influences shorter-term borrowing costs, including credit cards and auto loans. Mortgage rates work differently.
š Keep your eye on the bond market! Mortgage rates are influenced by bond market activity, inflation, economic conditions, world events, and expectations about the Federal Reserve's future decisions. The 10-year U.S. Treasury yield is one important indicator, along with the market for mortgage-backed securities.
š” What does this mean for buyers and sellers?
We cannot control interest rates, but we can control how prepared we are! Buyers can explore financing options, understand their budget, and be ready to act when the right property comes along. Sellers can position their homes strategically to attract serious buyers in the current market.
š The positive news? You don't have to wait for the perfect interest rate to start planning your next move. Understanding the market and having a knowledgeable real estate professional and lender on your side can help you make informed decisions.
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