Future Mortgage Rates

Hoenir

ReadySteadyPop said:

Hoenir said:

ReadySteadyPop said:

Fix now, can`t see FED or BOE dropping rates this year.

Not that Central Bank action correlates directly to mortgage lending rates. US fixed mortgage interest rates are nearer 7% currently. An indication possibly of what's to come. As the cheap money era continues to unwind. 

That`s right, the "10 Year Yield" is the one to watch, BOE isn`t really controlling mortgage rates.

BOE attempts to control the money supply by restricting the amount of money that the banks create. Problem is , even more so in the US,  there's a vast shadow banking sector which is outside of regulatory control. When pulling levers there's no knowing what the potential outcome is going to be.