I generally tell potential borrowers that if they follow the 10 Year US Treasury note rate, it generally is a good indication of the direction of 30 year fixed mortgage rates. It still is a good indicator, but other elements are currently having an effect skewing their correlation. Two ... » Learn More about The Spread Between the 10 Year Treasury and 30 Year Mortgage Rates Expand, and What it Means
Quantitative Easing
Fed Rate Increase – What Does It Mean For Mortgage Rates, Real Estate Market and Inflation?
The Federal Reserve did the widely predicted increase of the Fed Funds Rate from 0-.25% to .25-.5%. The ¼% isn’t a big deal, but the Fed Chairman Powell indicated that the target is 7 rate increases with a target of 1.9% by the end of 2022, and 2.8% in 2023-2024. The Q&A during the Chairman’s ... » Learn More about Fed Rate Increase – What Does It Mean For Mortgage Rates, Real Estate Market and Inflation?
The Fed Preps Us For Rate Increases
After their September 22nd meeting, the Federal Reserve left the Fed Funds Rate at 0-.25%, and the quantity of Bond and Mortgage Securities purchases intact at $120B per month... But they signaled that they feel comfortable scaling back on their bond purchases by the end of the year. The bond and ... » Learn More about The Fed Preps Us For Rate Increases
Mortgage Rates Still Great… For Now
The Federal Reserve has been setting the stages for tapering their purchasing of mortgage backed securities using Quantitative Easing (QE). Their purchasing of gov’t notes and mortgages have kept interest rates at artificially lower levels to compensate for the economic effects of the pandemic ... » Learn More about Mortgage Rates Still Great… For Now
Mortgage Rates Stable, But For How Long and Where Do They Go From Here?
The long-term interest rates have been fairly stable recently, and within a range since the beginning of April. Prior to that, the rates jumped substantially from January through March. The big quandary now is will the jump in the inflation rate only be transitory, as the Federal Reserve ... » Learn More about Mortgage Rates Stable, But For How Long and Where Do They Go From Here?