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Federal Reserve is about to hike interest rates once again – so why are mortgage rates coming down?

  • Written by D. Brian Blank, Assistant Professor of Finance, Mississippi State University
Federal Reserve is about to hike interest rates once again – so why are mortgage rates coming down?Homebuyers are receiving something of a holiday gift in falling mortgage costs.Andrii Yalanskyi/Getty Images

The Federal Reserve is expected to raise interest rates by half a percentage point on Dec. 14, 2022, to a range of 4.25 to 4.5%, which would be the seventh increase this year. So far in 2022, the Fed has lifted its benchmark short-term rate,...

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