**Summary:**
In this video, the speaker challenges the widely-held belief that the Federal Reserve controls mortgage rates and asserts that the Fed's ability to impact interest rates is limited. He argues that despite the Fed raising interest rates, mortgage rates have not followed suit as expected. The speaker points out that the mortgage market seems to be indifferent to the Fed's actions, indicating that other factors play a significant role in determining mortgage rates. He emphasizes the importance of monitoring the bond market as an indicator of potential changes in mortgage rates.

**Detailed Article:**
The video focuses on addressing the misconception that the Federal Reserve wields significant control over mortgage rates. The speaker views the Fed as a manipulator of market expectations rather than a direct influencer of interest rates. He criticizes the belief that Fed actions, such as raising interest rates, will automatically lead to an increase in mortgage rates. By examining data from bankrate.com, the speaker highlights that despite Fed rate hikes, mortgage rates have not followed the same upward trend.

The speaker draws attention to the disconnect between Fed decisions and mortgage rates by pointing out instances where mortgage rates did not react as expected to Fed actions. He illustrates this with examples of mortgage rates peaking before anticipated Fed rate hikes, showcasing a lack of correlation between the two. The speaker suggests that the bond market, rather than the Fed, plays a more significant role in determining mortgage rates.

Furthermore, the speaker indicates that the bond market serves as a reliable indicator for potential shifts in mortgage rates. He emphasizes the importance of monitoring the bond market to anticipate changes in mortgage rates accurately. By observing trends in the bond market, individuals can better understand and predict movements in mortgage rates.

In conclusion, the speaker challenges the conventional wisdom surrounding the Federal Reserve's control over mortgage rates, highlighting the complexity of factors influencing interest rates. He argues that the mortgage market appears to operate independently of Fed actions, underscoring the need to consider broader economic indicators, particularly the bond market, when analyzing interest rate movements.

I believe the fed are there just to manipulate the market that is the way to get things done

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the market dictates all the steps to follow so we have to wait for the direction in which it will take us

This is an interesting observation. Indeed, we expected mortgage rates to follow the Fed in sync, but instead they are ahead of the Fed, and the fact that 30-year mortgage rates remain unchanged is a sign that the market expects rates to fall soon. We'll see soon enough.

It's just a bit unbelievable because they use the term neutral rate. Nobody really knows how to calculate it and I don't think people can really afford the price increases.

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