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…]
It’s Fed Day! [LIVE POST]
June 12, 2024 by Leave a Comment
Weekly Mortgage Update for June 10, 2024
June 10, 2024 by Leave a Comment
Here’s a teaser: this week we’ll hear from the Fed when their two-day meeting wraps up on Wednesday. Would you like to know what else is impacting mortgage interest rates? Check out my latest video!
Mortgage Market Weekly Update for April 29, 2024
April 29, 2024 by Leave a Comment
This is a BIG week with the wrap up of the two day Fed meeting and the Jobs Report… want to know more? Check out my latest video.
Mortgage Market Update for the week of March 18, 2024
March 18, 2024 by Leave a Comment
We have the FOMC meeting wrapping up this Wednesday. While we don’t anticipate any changes to the Fed Funds rate, what Chairman Powell has to say following the meeting may impact mortgage rates. For more detail, check out my latest Mortgage Market Update video.
It’s FED Day! [Live post] Fed Funds Rate is UNCHANGED
January 31, 2024 by Leave a Comment
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 Market Update for the week of January 16, 2024
January 16, 2024 by Leave a Comment
Where are mortgage rates? What may impact the direction of mortgage rates this week? Check out my latest video for more information!
If you are considering buying or refinancing a home, even if it’s a year or more away, I am happy to help you create a plan. Please contact me for more info!
All Eyes are on the Fed [Live Post]
December 13, 2023 by Leave a Comment
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!
September 20, 2023 by Leave a Comment
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…]
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