Paco Aramburu

04/06/2026

09/27/2025

Today is my third birthday at Compass Realty. So, yay!

09/19/2025

Happy Talk Like A Pirate Day!

09/09/2025

Why Fed Interest rate Reduction Does Not Mean Mortgage Rates Reduction

Myth busted!

Here's why:

The Fed's rate is different from mortgage rates. The Fed controls the overnight lending rate between banks. That impacts short-term borrowing like credit cards, auto loans, and home equity lines—but not directly 30-year fixed mortgages.

Mortgage rates follow bonds, Not the Fed. Mortgage rates are tied to the bond market, specifically mortgage-backed securities. They rely on the benchmark 10-year U.S. Treasury yield—the interest rate the U.S. government pays to borrow money for 10 years. That yield is influenced by a complex mix of factors like inflation, unemployment, and economic growth forecasts.

Mortgage rates reflect long-term expectations. Rates on a 30-year mortgage are based on investors' expectations for the economy and inflation over the next decade, not just on the Fed's near-term actions.

Sometimes rates move in the opposite direction. So, while Fed decisions can put indirect pressure on long-term rates, mortgage rates don't move in lockstep. In fact, last fall when the Fed cut interest rates, mortgage rates jumped by a full percentage point because investors feared higher inflation and pulled money out of bonds.

Source: Shelly Ave
SVP of Mortgage Lending
[email protected]
Rate.com/shellyave
O: (312) 940-4575
C: (773) 343-5404

Rate: 3940 North Ravenswood Chicago, IL 60613

Paco is: 773 865-5678

09/06/2025

773 865-5678 Call or text for Buy or Sell

09/05/2025

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Chicago real estate

08/31/2025

Happy Labor Day! Today we celebrate the hard work and dedication that make our communities strong. May your weekend be filled with relaxation, family, and gratitude. Wishing you joy and a well-deserved break as we honor the value of every effort.