Today the Fed will wrap up their 2 day meeting around 11:00 am PST. All ears will be anxiously awaiting any clues as to what their policy will be in 2015.
It’s interesting to see how the markets react to “Fed Day” so I thought I’d do a “live post” today, updating this throughout the day with current mortgage rates.
Unless otherwise noted, mortgage rates quoted in this post will be based on a sales price of $500,000 with a loan amount of $400,000 (also applies to a no-cash-out refi with a loan amount of $400,000 and 80% loan to value/appraised value of $400,000) using a 30 year fixed conventional mortgage. Borrowers have credit scores of 740 or higher and the transaction is closing by January 23, 2015 or sooner.
NOTE: These rates are expired. For a current mortgage rate quote on your Washington state home, please click here.
As I write this, at 8:10 am, the DOW is up around 95 at 17,165 and I’m quoting: 3.875% (apr 3.871%) priced with 0.832 points. This is essentially the same pricing that I quoted on Monday’s rate post – just a tad higher in fee (0.066 points).
10: 31 update: DOW is up 151 and no changes to mortgage rates ahead of the Fed.
11:02 update: DOW is up to 17,341 following the Fed statement (read the Fed press release here). As expected, there are no changes to the Fed funds rates. There were 3 dissenting voters at this meeting. Janet Yellen’s press conference will follow at 11:30 PST. No change to mortgage rates…yet.
11:32 update: DOW is at 17,314 as Fed Chair Yellen begins her press conference. No changes to mortgage rates yet.
12:02 update: “Lift off” for the Fed Funds rate is expected to happen some time in 2015 following a couple Fed meetings and of course, subject to economic data. It is anticipated that the Fed Funds rate could be 2.5% by late 2016. NOTE: This will have a direct impact to interest rates on home equity loans that are not “fixed” and that are based on the Prime Rate.
12:31 update: receiving an “alert to lock” warning from one of the services I subscribe to. MBS are now getting hit following the end of Yellen’s press conference.
12:48 update: DOW up 310 at 17379. I’ve received a notice from a wholesale lenders that they are re-issuing rate sheets with pricing for the worse. When I check rates with our pricing engine for the scenario I’ve been quoting for this post, the pricing has not changed.
2:45 update: Well this is what I get for attempting to write a post to illustrate how mortgage rates can change throughout the day… as I write this update, rates are unchanged based on the quote above. The DOW closed up 288 at 17,356.
I’ll send a shout out on Twitter @mortgageporter when I update this post throughout the day.
Stay tuned!
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