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…]

How does economic news impact mortgage interest rates?

Mortgage rates are based on bonds (mortgage backed securities) and are traded fairly similar as stocks. Investors tend to favor stocks over bonds as stocks tend to provide a better return. However, investors will opt for bonds over stocks when they are seeking safety when markets are tumultuous.  When the stock market is on a run, odds are mortgage rates may be moving higher as investors are selecting stocks over bonds. And when the stock market is tanking, mortgage rates tend to improve for the same reason. [Read more…]

How the Fed impacts Mortgage Rates [LIVE MORTGAGE RATE POST]

20140504_210758Today is “Fed Day” and it’s widely anticipated that we will see our first increase to the Fed Funds rate in years.

Fed Chair Janet Yellen is expected to announce an increase of 0.25% to the Fed Funds rate following the wrap up of today’s FOMC meeting around 11:00 PST.

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LIVE POST: Will the Fed Impact Mortgage Rates?

20140504_210758I like writing a “live post” with updates throughout the day to attempt to illustrate how mortgage rates (or the pricing of mortgage rates) can fluctuate throughout the day.

Today the two day Fed meeting wraps up and we’ll learn if the Fed is going to raise the Fed Funds Rate. Following the announcement from the Fed (around 11:00 am PST), we will have commentary from Fed Chair Janet Yellen.  While the Fed doesn’t directly dictate what mortgage rates will be, their actions certainly influences mortgage interest rates.

Click here for a mortgage rate quote for your home in Washington.

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The Fed says…. [LIVE POST]

20140504_210758Today 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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What the Fed Says and How It Impacts Mortgage Rates [LIVE POST]

I am going to attempt to write a “live post” today to illustrate how mortgage rates may change based on data that is released throughout the day and market reactions. Please keep in mind that despite my best efforts, sometimes a “live post” can be a bit challenging…we’ll give it a try!

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What May Impact Mortgage Rates this Week: December 9, 2013

mortgageporter-economyThis week’s calendar of economic indicators is very light compared to last week. Here’s what is scheduled to be released this week:

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Fed to Keep Mortgage Rates Sweet and Low

iStock-000020911287XSmallThe Fed made no changes to the Fed Funds rate… no surprise there. However, the Fed did surprise the markets today announcing they are not tapering their purchasing of mortgage backed securities. From today’s press release:

…Taking into account the extent of federal fiscal retrenchment, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program a year ago as consistent with growing underlying strength in the broader economy. However, the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases.  [Read more…]