Today at around 11:00 am PST, the FOMC will wrap up their two day meeting and announce any changes to the Fed funds rate. Markets will react to the Fed statements regarding their views of our economy impacting their decisions on whether or not to raise the Fed funds rate. It is widely anticipated that there will be no change to the Fed funds rate today.
It’s not unusual to have the Fed meeting impact the direction of mortgage rates…so I thought I’d attempt a “live rate post” to illustrate how mortgage rates can change in a day. Mortgage rates have been trending higher this week. As of 7:52 am this morning, the 30 year fixed rate is higher by about 0.125% in rate or 0.752 in fee compared to what I quoted two days ago on Monday’s post.
Rates quoted below are based on a purchase in the greater Seattle – King County area with a sales price of $500,000, 20% down payment and a conventional loan amount of $400,000. The home buyers have excellent credit with scores of 740 or higher. The transaction is closing by June 5, 2015 or before.
As I write this post on April 29, 2015 quoting:
7:52 am: 3.750% (apr 3.866%) priced with 0.811 points.
10:24 am: The Dow is down 115.
11:10 am: The Dow is down 74 after the Fed statement was released. No change to mortgage rates as of yet…
12:27 pm: 3.750% (apr 3.912%) priced with 1.360 points. Mortgage rates are rising following the release of the FOMC statement.
1:07 pm: 3.750% (apr 3.851%) priced with 0.624 points. Mortgage rates are settling down and actually improved from this morning.