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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!
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.
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…]
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…]
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…]
