Completely exploring and explaining how fixed rate mortgages go up or down is complex. While one factor – mortgage bond pricing – dictates the direction of mortgage ratesa multitude of things influence mortgage bond movement. In other words, in totality several complex factors directly and indirect...
9% Mortgages Seen if Fed Aggressive on RatesPredicts that mortgage rates will climb up to 9% for the first time in five years, as of May 9, 2000. Impact of rates on homebuyers; Actions of the Un...
Another Fed rate cut is now official. Here's what that could mean for mortgage interest rates.
After more than a year of keeping thefederal funds ratesteady, the Federal Reserve has begun lowering interest rates. After its September gathering, the Federal Open Market Committee (FOMC) made a much-anticipated cut of 50 basis points, lowering the target range to between 4.75% and 5.0%. I...
The Federal Reserve began cutting the federal funds rate in September 2024 after a series of hikes in 2022 and 2023, but interest rates on mortgages have actually risen in the time since then. What gives? Unfortunately, the Fed can't wave a magic wand to lower mortgage rates. ...
Mortgage rates had alreadydroppedover recent months in anticipation of the rate cut, they said. They forecasted a gradual thaw in the market as homebuyers perk up and borrowing costs slowly decline. “This is a harbinger of good times to come, but we’re not there yet,” Susan Wachter, a...
The Federal Reserve is set to issue another rate cut this week. Here's what could then happen to mortgage rates.
How the Fed Interest Rate Increase Affects Mortgages You can see by now that the Fed doesn’t, and didn’t, increase mortgage rates as a result of increasing the target rate. Mortgage rates have risen dramatically in the past few weeks, partly due to inflation expectations, but most likely...
The average savings account yield for all banks and credit unions, of which the vast majority are brick-and-mortar, is 0.52% as of April 24. What about mortgages? The Fed doesn’t directly set mortgage rates, but it does influence them. The bond market, inflati...
For people with fixed mortgages, their rate won’t change unless they refinance their mortgage or sell and move someplace else. Auto loans reflect lower rates The effects of the Fed’s half-point rate cut in September and its quarter-point cut in Nov...