Arbitrarily. They front-running what they perceive to be an increase of the FFR.
I believe they're wrong, and that rates will come down again in the future.
I also would be surprised to see certain rates go negative at some point in coming years.
It would not surprise me to see consumers paying a bank to "keep their money safe", instead of the bank paying any interest on accounts.
“Mortgage rates have already risen.
Arbitrarily. They front-running what they perceive to be an increase of the FFR.”
That’s not right. Mortgage rates are set by adding a spread of about 1.5% to the current 10yr Bond rate.
That rate has risen and mortgage rates have of course risen with it. There’s no “front-running”.