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According to a recent MarketWatch column, the cut shouldn’t cause lower mortgage rates. The move was made in response to the global coronavirus outbreak and its impact on the economy. There are now more than 100,000 cases globally, with more than 3,200 deaths. Over the weekend, New York became the latest state to declare a state of emergency due to the outbreak.
“Mortgages respond to market forces and not to the Fed,” Holden Lewis, mortgage and real estate expert at NerdWallet, told MarketWatch. “The Fed is actually following and not leading when it comes to mortgage rates.”
Mortgage rates generally track the yield on the 10-year Treasury note. Investors fleeing to the safety of bonds had pushed the 10-year Treasury to all-time lows in recent weeks.
