It’s FED Day! [Live post]

Around 11:00 PST today, the FOMC (Federal Open Market Committee aka The Fed) will wrap up their two-day meeting with an announcement on any adjustments they are making to the federal funds rate. Although the Fed does not directly control mortgage interest rates*, the changes to the funds rate and the Fed’s commentary influences the direction of mortgage interest rates. Mortgage rates are based on bonds (mortgage-backed securities or MBS) and are traded, just like other types of bonds. Markets will react to the Fed’s actions and this will impact mortgage rates. Commentary or signs that inflation is not getting into check will push mortgage rates higher and indications that inflation is taming and that the Fed will lower the funds rate soon will help lower mortgage interest rates. [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…]

The Fed’s Announcement Yesterday and how it impacts Credit Cards

Yesterday the Fed (FOMC) wrapped up their two day meeting deciding to leave the Fed Funds rate unchanged.  How does this impact you?

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Big Day with the Fed! [LIVE POST]

20140504_210758It’s been a while since I’ve done a live post. I think today calls for a live post since the FOMC is meeting and it’s highly anticipated they will decide to increase rates. Mortgage rates have been steadily climbing since mid-November following the elections. There are several factors that are influencing the upward move in rates, including what appears to be a better economy along with signs of inflation. [Read more…]