It’s Fed Day! Fed Funds Rate Unchanged.

May 7, 2025 by Leave a Comment

This afternoon (11:00 am PST) wraps up the two-day FOMC meeting and we will learn if the Fed has decided to make any adjustments to the Fed Funds rate. Although the Fed does not directly control the interest rate of mortgage loans (except for home equity lines of credit that follow the prime rate), mortgage interest rates are influenced by the actions by the Fed.

Odds are that there will be no changes to the Fed funds rate today.  Markets will be paying close attention to what Fed Chair Jerome Powell has to say following the Fed’s announcement of their rate decision. [Read more…]

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Mortgage Rate Update for the Week of May 5, 2025

May 5, 2025 by Leave a Comment

How are mortgage rates doing after the conflicting jobs data last week?

Will the Fed lower rates on Wednesday? (Spoiler alert – the Fed does not directly control mortgage interest rates).

What’s going on with federal student loans?

And an announcement on our upcoming webinar “Retire Like a Boss” on this week’s episode!

 

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It’s Fed Day!

March 19, 2025 by Leave a Comment

As expected, the Fed has decided to leave the Fed funds rate unchanged, leaving the targeted range between 4.25% and 4.5%. This rate does not directly affect mortgage interest rates, but rather influences the direction of mortgage interest rates (unless you have a home equity line of credit that is based on the prime rate).

What may impact mortgage rates today is the press conference following the Fed rate announcement. Stay tuned!

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Mortgage Rate Update for the Week of March 17, 2025

March 17, 2025 by Leave a Comment

Happy St. Patrick’s Day!

You don’t need the luck of the Irish to have your own pot of gold! Check out my latest Mortgage Rate Update to learn where rates are trending, what may impact mortgage interest rates this week and where you can find your own pot of gold.

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It’s Fed Day! [Live Post] NO CHANGE to the Fed Funds Rate

January 29, 2025 by Leave a Comment

8:15 a.m.  Today around 11:00 am PST, we’ll have the decision from the FOMC on whether they are making any adjustments to the federal funds interest rate. Odds are very strong (99.5% per the CME Group) that there will be no change at this meeting. This is what the markets are anticipating. If the Fed surprises us, then markets will react dramatically. The Fed’s actions and market reactions are what may impact mortgage rates today as mortgage rates are based on bonds (mortgage-backed securities).  The Fed does not directly control mortgage interest rates.

Following the Fed announcement today, Fed Chair Powell will hold a press conference. What he says (or what the market interprets from his press conference) may also impact the direction of mortgage interest rates. The markets are watching for signs that inflation is cooling (good for mortgage rates) or if inflation is being stubborn (bad for mortgage rates).

Right now, MBS 30 year is pretty flat (down 4 basis points). [Read more…]

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It’s Fed Day! [Live Post]

December 18, 2024 by Leave a Comment

Today wraps up the 2-day FOMC meeting which ends with a highly anticipated announcement from the Fed on decisions the Fed Funds rate. It’s important to note that this decision does not directly change mortgage rates. For example, if you hear that the Fed has cut rates by a quarter point or 25 basis points, this does not mean that rates for the 30-year fixed are now a quarter point lower.  The action the Fed takes and their commentary or information they release during this meeting does influence the direction of mortgage rates. [Read more…]

Filed Under: The Fed - FOMC

It’s Fed Day! Fed Funds Rate Cut 50BPS! [LIVE Post]

September 18, 2024 by Leave a Comment

This is one of the most highly anticipated “fed days” that I can recall with the expectation that the Fed will lower the funds rate for the first time in four years. The question is, how much will the fed reduce the funds rate? Odds are currently at a 50-basis point drop, which is what the markets are betting on. [Read more…]

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It’s Fed Day! [LIVE POST]

June 12, 2024 by Leave a Comment

In a couple of hours, the FOMC will wrap up their two-day meeting with an announcement on their decision on if they are going to make adjustments to the Fed funds rate. The Fed funds rate does not directly affect mortgage interest rates (except for HELOCs) however, it does influence the direction of mortgage rates. This is because the Fed’s decision is based on the level of inflation. Mortgage rates react negatively to inflation as mortgage rates are based on bonds (mortgage-backed securities/MBS). So, when the Fed raises the funds rate or keeps the rate unchanged due to inflation being too high, mortgage rates tend to move higher. If inflation is in line, we often see mortgage rates improve. [Read more…]

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