Mortgage News

The Fed left the Fed Funds Rate unchanged again today for the eighth time in a row after 17 consecutive hikes. None of this is news to us. The Fed’s press release, though, highlights a key theme about our country’s economy: inflation may be moderating, but we are far from in the clear. In other words, there are still a handful of outside factors that could push the Fed back out of their comfort zone and force them to raise…

Original post by Dan Green

Sorry to have been missing lately, folks. In between a move to a new home and tying up a lot of loose ends, I had to make some tough choices. Family first, blogging second. Plus, I shut down my home network Sunday to box up my computer gear and left myself with no access to the Internet except via Palm Burgundy. Not much has really happened this week. Rates are slightly down on poor housing data and safe haven buying…

Original post by Dan Green

The graph above shows how the market’s expectation of the Fed have changed since March. The colored lines represent the Fed Funds Rate as set at the FOMC’s August meeting. The x-axis represents time The y-axis represents the percent likelihood of an event happening So, moving from left-to-right, we can see how the markets gamble on the Fed Funds Rate. On March 13, there was an equal probability — 30 percent — that August’s Fed Funds Rate would be the…

Original post by Dan Green

And the hits just keep on coming. The Fed’s May meeting minutes showed that it is concerned about inflation and that is pushing mortgage rates higher once again today. Despite more favorable economic readings, inflation remained uncomfortably high for the Fed and is following neither a downward trend, nor an upward trend. This makes it less likely that the Fed will lower the Fed Funds Rate rate in the near future. The Fed’s inflationary discomfort is forcing markets to change…

Original post by Dan Green