The Fed Doesn't Control Mortgage Rates (Here's What Does) | Dave Meyer of BiggerPockets

In this episode of the Real Estate Update Podcast, host Paul Centopani sits down with Dave Meyer, Chief Investment Officer at BiggerPockets, to break down one of the biggest misconceptions in housing: the belief that the Federal Reserve directly controls mortgage rates. While the Fed plays an important role in the economy, Dave explains why mortgage rates are actually influenced by a much broader set of factors, including Treasury bond yields, inflation, and investor demand for mortgage-backed securities. If you've ever wondered why mortgage rates don't always move the way you expect after a Federal Reserve meeting, this conversation explains what really drives borrowing costs—and what today's economic outlook could mean for anyone planning to buy or refinance a home.The conversation explores what came out of the latest Federal Open Market Committee (FOMC) meeting, why mortgage rates remain difficult to predict, and how inflation, employment, and global economic events all shape the housing market. Dave also explains why Treasury bond yields often provide a better indication of where mortgage rates may be headed than the Fed's latest announcement. Along the way, he breaks down complex economic concepts into practical mortgage education and real estate insights that every homebuyer can understand.Dave closes by sharing his outlook for mortgage rates through the remainder of the year and his perspective on today's real estate market. While affordability continues to challenge many buyers, he explains why today's market offers more negotiating power than buyers have had in years—and why waiting indefinitely for dramatically lower mortgage rates may not be the best strategy. Whether you're a first-time homebuyer, planning your next move, or simply trying to better understand today's housing market, this episode will help you make more informed decisions.Subscribe for more mortgage news, housing news, homebuyer tips, and real estate market updates.Comment below: Do you think mortgage rates will be lower a year from now? We'd love to hear your prediction and why.Connect with Mortgage Research Network:YouTube: ⁠⁠⁠⁠⁠⁠⁠⁠https://www.youtube.com/@MortgageResearchNetwork⁠⁠⁠⁠⁠⁠⁠⁠Instagram: ⁠⁠⁠⁠⁠⁠⁠⁠https://www.instagram.com/mortgageresearchnetwork/⁠⁠⁠⁠⁠⁠⁠⁠Facebook: ⁠⁠⁠⁠⁠⁠⁠⁠https://www.facebook.com/mtgresearchnews⁠⁠⁠⁠⁠⁠⁠⁠Website: ⁠⁠⁠⁠⁠⁠⁠⁠MortgageResearch.com⁠⁠⁠⁠⁠⁠⁠⁠Connect with Dave Meyer:Instagram: https://www.instagram.com/thedatadeli/LinkedIn: https://www.linkedin.com/in/dave-meyer-5660846/On The Market Podcast: https://www.youtube.com/@UCxDXuLvtjJ9Est8PrG3i2VA BiggerPockets Podcast: https://www.youtube.com/c/biggerpocketsFirst Time Homebuyer Cheat Sheet: ⁠⁠⁠⁠⁠⁠⁠⁠https://bit.ly/4w8CiVM⁠⁠⁠⁠⁠⁠⁠⁠Homebuyer Calculators: ⁠⁠⁠⁠⁠⁠⁠⁠https://bit.ly/4n0hDPv⁠⁠⁠⁠⁠⁠⁠⁠Connect With a Lender: ⁠⁠⁠⁠⁠⁠⁠⁠https://bit.ly/426Gyaw------0:00 – Intro0:18 – What the Federal Reserve Actually Does1:00 – Does the Fed Control Mortgage Rates?1:57 – Breaking Down the Latest FOMC Meeting4:43 – Why Treasury Bond Yields Matter More6:19 – Will the New Fed Chair Change Mortgage Rates?8:15 – What Could Trigger Rate Cuts or Rate Hikes?11:24 – Why the Fed Targets 2% Inflation12:51 – What Really Determines Mortgage Rates?15:15 – Dave's Mortgage Rate Outlook17:03 – Why Today's Housing Market Favors Buyers18:32 – Outro------#mortgagerates #housingmarket #homebuyertips