Why Mortgage Rates Dropped This Afternoon

3/15/2017 | Casey Fleming As anticipated, the FOMC – the Federal Open Market Committee of the Federal Reserve (or simply, “The Feds”) – voted to raise interest rates today, raising the discount rate from 0.75% to 1.000%.  So, everyone wants to know why mortgage rates dropped this afternoon.  Yes, that’s correct – dropped.  Shortly after...

Mortgage Rates Hold Steady

As expected, mortgage rates held steady this last week, with a very slight improvement Monday and Tuesday of this week, supporting the notion that bonds are oversold but won’t recover until the New Year. The Electoral College vote did not appear to have any measurable impact on the market, so we presume that the market...

The Federal Reserve Strike Again

Last weekend I wrote that markets would probably idle until the Federal Reserve published their announcement on Wednesday afternoon after their two-day policy meeting.  After the announcement came out the stock and bond markets both rallied dramatically, driving Treasury bond yields and mortgage-backed security yields lower. To see how dramatic the words of the Federal...

Well, What Did The Feds Do?

I mentioned last weekend that interest rates would probably rise or hold steady in anticipation of the announcement from the Federal Open Market Committee, which is comprised of the Board of Governors of the Federal Reserve Bank, affectionately known as “the Feds.” After a two-day meeting March 15th and 16th the Feds have decided to...

Wednesday Could Be Huge For Interest Rates

Last weekend I wrote: “This coming week is a quiet one for economic reports, although you never know when some unexpected news might pop up and move the market. But if bond yields drop next week retail rates are unlikely to follow, so rates would stay about where they are. If bond yields stabilize, the...

Why China Could Push Rates Up – And Why They Probably Won’t

If you are like me you would rather not think about the fact that China, while attempting to address their economic problems, might have a significant impact on the mortgage interest rates we pay. But even though I’d rather not think about it, I’m paid to do so, so here I go. How are mortgage...

Will Rising Interest Rates Paralyze the Real Estate Market?

An easy answer to this seemingly simple question is “Yes.” All things being equal rising rates mean higher monthly payments, fewer folks qualifying for home purchases, and fewer folks wanting to buy because the cost of ownership is just out of reach. But those are temporary issues. The market will adjust, settle in to a...

How Will the Fed’s Increase of Interest Rates Affect You?

No one will know until we all know, but most analysts agree and investors are betting that the “Feds” – the Board of Governors of the Federal Reserve Bank – will raise interest rates when they meet on December 15th and 16th. How will this impact you? First, let’s talk about what interest rates they...

Interest Rates Remain Steady, Poised to Drop

On November 7th I wrote that interest rates had jumped up at the end of the first week of November, and that they would probably settle back down slowly. That is indeed what has happened. There is movement every day, but all this month the movement in interest rates (no matter which measurement you use)...

Interest Rates Because Today is a Big Day

Interest rates have been pretty steady for an unusually long period of time, floating up and down within a small window. To track mortgage interest rates we tend to look at U.S. Treasury bonds to measure where interest rates are, because it’s an index where the security and timing of repayment is somewhat similar to...