It’s Fed Day! Fed Funds Rate Unchanged.

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.

As I write this (7:24 am on May 7, 25) mortgage-backed securities (MBS), what mortgage interest rates are based on, are pretty flat (up 7 basis points) and the Dow Jones is up 207 at 41,306.

Update 11:04 am: The Fed has left the Funds Rate unchanged. MBS is up 13 basis points and the Dow is up 201 for the day.

From the press release:

“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated….

The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities.”

I will update this post throughout the day. Stay tuned! 

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

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…]

It’s Fed Day! Fed Funds Rate is Unchanged.

Today the FOMC will wrap up their two-day meeting and announce whether or not they are going to adjust the Fed funds rate. It is widely anticipated that the Fed will not make any changes to the Fed funds rate today. Close attention will be paid to what Fed Chair Powell states after the meeting to see if he provides any indications on when the Fed will adjust the Fed funds rate. [Read more…]

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] 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…]