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]
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…]
Mortgage Rate Update for the Week of January 29, 2024
This week is packed with market moving events that may impact the direction of mortgage rates, including the FOMC meeting and the Jobs Report. Watch my latest video for more details and please contact me if you are considering buying or refinancing a home.
Fed Raises Funds Rate a Half Point
Today wrapped up the two-day FOMC meeting and Chairman Powell announced that the funds rate will be increased by a half point. As of today, the federal funds rate is 0.75-1% and is expected to another 2 percent by the end of the year.
From the FOMC statement: [Read more…]
Fed Leaves Rates the Same BUT…
The Fed’s announcement today to leave the funds rate unchanged was not a surprise to the markets. What did send the bond market in a tizzy this afternoon was that the Fed ever-so-slightly moved the goal posts out a bit for inflation. [Read more…]
Mortgage interest rates continue to trend higher
This morning Freddie Mac released their weekly Prime Mortgage Market Survey (PMMS) showing that mortgage interest rates are continuing to trend higher. Click here for current mortgage interest rates in greater Seattle and beyond.
Big Day with the Fed! [LIVE POST]
It’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…]
The Fed says…. [LIVE POST]
Today at around 11:00 am PST, the FOMC will wrap up their two day meeting and announce any changes to the Fed funds rate. Markets will react to the Fed statements regarding their views of our economy impacting their decisions on whether or not to raise the Fed funds rate. It is widely anticipated that there will be no change to the Fed funds rate today.
It’s not unusual to have the Fed meeting impact the direction of mortgage rates…so I thought I’d attempt a “live rate post” to illustrate how mortgage rates can change in a day. Mortgage rates have been trending higher this week. As of 7:52 am this morning, the 30 year fixed rate is higher by about 0.125% in rate or 0.752 in fee compared to what I quoted two days ago on Monday’s post.
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