Diana Olick | CNBC
Hike or no hike on rates from the Federal Reserve, housing has far more important things to think about. Home sales, home construction and the whole housing economy are dealing with all kinds of pressing issues that take precedence over mortgage rates. Let us explain.
How can it be: If the Fed raises rates, won’t mortgage rates spike and people will stop buying houses?
No. First, mortgage rates don’t exactly follow the federal funds rate. They follow mortgage bond yields, and those yields loosely follow the yield on the U.S. 10-year Treasury.
