09/18/2026
JP Hussey of The Hussey Team is here to talk about the difference between fed rates and mortgage rates (they're NOT the same thing).
• Fed fund rate (overnight bank lending rate) directly impacts short-term loans like HELOCs and car loans, while mortgage rates move independently based on bond/MBS markets, inflation expectations, Treasury yields, and economic growth forecasts.
• Historical data shows zero correlation between Fed rate hikes and mortgage rates: out of 11 Fed rate increases since 2022, mortgage rates decreased the next day 6 times, demonstrating a 50/50 random relationship.
• Smart investors capitalize on volatile market periods by making purchases when others react emotionally to Fed announcements and market chaos, focusing on personal financial fundamentals (budget, lifestyle needs) rather than short-term rate fluctuations.
• Stock market reactions to Fed statements create an indirect pathway to mortgage rates through shared sensitivity to inflation data, Fed policy expectations, economic growth, and Treasury yields -- not through direct Fed fund rate changes.
If you have questions for us, hit us up on the Hussey Hotline at (484) 353-6141! (CALL OR TEXT!)
