BobS
Let’s remember that the Fed can only push down short term rates, like the fed funds rate and short term treasuries. Long term rates are set by the market, and are especially influenced by inflationary expectations.
With the dollar weak and falling, investors will not want to tie up their money at a fixed rate of, say, 5 3/4% for many years when inflation could take off due to a profligate Fed and incoming big-spending congress and president.
This may explain the increasing divergence, in recent days, between the short-term money rates and long-terms 10 & 30-year bond rates (& mortgage rates).
We may have recently seen the lowest mortgage rates for a long, long time.
