Top-tier 30-year fixed mortgage rates clawed back about half of Wednesday’s jump, returning to the lower-middle of the range seen since mid-May.
The spike followed the Fed’s revised outlook for possible rate hikes later this year, which hit debt markets immediately after the announcement.
Fed funds rates most directly affect ultra-short-term borrowing, while the impact fades further out the curve, allowing longer-term debt to recover faster than shorter-term debt.
A typical mortgage may run 30 years on paper, but average life is closer to 5 years because of refinancings and home sales, helping explain why mortgage pricing did not stay at peak post-Fed levels.