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. [Read more…]

It’s FED Day! [Live post] Fed Funds Rate is UNCHANGED

At 11:00 am PST today, the FOMC will wrap up their two-day meeting and we will learn if they have decided to make any adjustments to the Fed Funds rates. It is not anticipated that they will make any changes at this meeting. As I write this (7:35 am), mortgage backed securities are up about 22 basis point, which is following a weaker than expected ADP Employment Report. The DOW is at 38,493. [Read more…]

All Eyes are on the Fed [Live Post]

This morning we received some mortgage rate friendly news on the PPI (producer price index) showing that overall inflation was flat last month. This bit news is just hours before the Fed wraps up their two-day meeting and announcement on any movement with the Fed Funds Rate at 11:00 PST. Stay tuned! I will continue to update this post today. [Read more…]

It’s Fed Day! [Live Post] No Change to the Fed Funds Rate!

Good morning! It’s just before 7:00 am PST as I’m writing this post. In a couple of hours, we’ll hear the announcement from the FOMC wrapping up their two day meeting on measures they will take to get inflation in line, which includes adjustments to the Fed Funds rate. The Fed Funds rate does not directly impact mortgage interest rates (except for HELOCs attached to the Prime rate), however the action the Fed takes does influence the direction of mortgage interest rates. Mortgage interest rates are based on bonds (mortgage-backed securities or MBS) and react similarly to stocks. Inflation is the “arch enemy” of bonds, which is a big part of why mortgage rates have been higher these past few years. Should the Fed indicate that inflation is taming and investors believe what the Fed is saying, we should see mortgage rates improve…and of course, the opposite is true. [Read more…]

It’s Fed Day! Will they Pause or ? [Live Post]

10:15 am: As I begin this post, we are about 45 minutes from knowing if the Fed is going to “pause” on hiking the fed funds rate, or if the hikes will continue.

Typically, mortgage rates would be improved right now already factoring in the pause, which would indicate that inflation is taming. Inflation retreating is good news for mortgage interest rates since mortgage rates are based on bonds (mortgage-backed securities). Right now (10:17 PST), MBS for 30 year 5% are down about 10bps. [Read more…]

LIVE: It’s FED Day! Fed increases rates by a half point.

6:49 a.m. Well… it’s kind of a live post – I will be updating this post throughout the day. This morning, all eyes are on the FOMC (aka “the Fed”) as we wait to learn how much the Fed funds rate will be adjusted. It is anticipated that the Fed will push the rate 0.500% higher today. This will directly impact loans that are attached to the Prime interest rate, such as home equity loans and many credit cards with variable rates. [Read more…]

Fed increases Funds Rates by 0.75 Percentage Points

Today, in a move that probably surprised nobody, the FOMC increased the Funds Rate by 0.75 percentage points to 2.500%.

In addition, the Fed reiterated their commitment to reduce their holdings in Treasury/mortgage-backed securities and agency debt.

Mortgage rates reacted favorably as this increase was highly anticipated by the markets.

What will not be reacting so favorably are credit cards, home equity loans and other debts where interest rates are attached to Prime as the Prime Rate follows the Fed Funds rate.

PLEASE pull out your credit card statements, and any other debts to do a “checkup” on what your interest rates are. I’m happy to review your credit cards with you to see if refinancing or a second mortgage makes sense for your financial scenario.

Holy cats! My credit card interest rates!

I decided to take my own advice that I’ve been dishing out about credit cards and debts. Today I reviewed my credit card accounts to see what my current interest rates are. I’m pretty lucky to have great credit and that I’m able to pay off my debts monthly. [Read more…]