It’s FED Day!

Today the FOMC wraps up their two-day meeting and around 11:00 am PST, we will learn if the Fed is going to make any adjustments to the Fed Funds rate. It is widely expected they will not adjust the rate today.

What may impact mortgage interest rates today will be the press release and Fed Chair Powell’s commentary following the meeting.

As I write this post at 7:58 a.m., mortgage-backed securities are pretty flat with the 30YR 6% up 3 basis points. The DOW is up 33 to 39,243.

Stay tuned!

11:04 am Update: As expected, the Fed leaves the funds rate unchanged. MBS 30Yr 6% is up slightly to 13 basis points. DOW is at 39,287.

There is a lot of data to mull over from this meeting.

From the Press Release:

Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated….

The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.

Next up is the press conference at 11:30 a.m.  (I have a consultation with a client so I’ll be following up with my update a bit later.)

12:55 pm. MBS 30YR 6% is up 26 basis points, which puts lenders in a position to possibly re-price for the better! In other words, we should see mortgage rates improving this afternoon.

All three of major averages closed at record highs. The Dow closed at 39,512, the S&P 500 closed at 5,224 and the Nasdaq hit 16,369.

Our next FOMC Meeting is April 30 – March 1, 2024.

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