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Why Homebuyers Should Root for a Fed Rate Hike

Perspective: Homebuyers need a credible Fed more than a gentle one. A gap between rates helps explain why.

  • Homebuyers should support Fed rate hike, contrary to intuition.
  • Fed's policy rate at 3.50-3.75%, 10-year yield at 5.041%.
  • Mortgage rates (7.17%) reflect bond market yields, not Fed rate.

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