Fed Rate Hike – What Does It Mean?

The Board of Governors of the Federal Reserve Bank (The Fed for short) met today (3/16/2022) to discuss monetary policy.  At the end of the meeting, they announced a Fed rate hike.  The Fed has a dual mission – to keep the economy growing, and to keep inflation low.  These two goals conflict with each...

Interest Rate Update

5/17/2022 | No surprise, interest rates are up.  What is surprising is that they have gone up faster and farther than I’ve seen before in my time in the industry.  (That’s, umm, well, a long time.) How high have they gone up, and will it last? The three most important factors in interest rates are...

Fed Raised Interest Rates – Or Did They?

You will hear lots of chatter that the Fed raised interest rates in mid-December.  But is that true?  On December 15th the Governors of the Federal Reserve (The “Fed”) announced that they were beginning to worry that inflation might be taking hold in the U.S. after all.  In order to reduce the possibility of inflation...

Inflation and Mortgage Rates

Let’s talk about inflation and mortgage rates.  Inflation is the single biggest factor in interest rates.  The higher inflation goes, the higher interest rates will go.  Why is this? Who sets mortgage interest rates? It’s helpful to know that your lender is not lending their own money when they give you a mortgage.  Rather, they...

Rising Interest Rates – When Will it Stop?

But look what happened in the last year.  Margins have steadily declined as lenders expanded their operations to try to take advantage of the surge in business, but then business levelled off. 

Conforming Loan Limit 2022 – They Just Lowered Rates Again

Conforming Loan Limits 2022 Conforming loan limits are the maximum mortgage loan that Fannie Mae and Freddie Mac (the agencies) will purchase.  Why is this important?  When lenders make loans that they can sell to the agencies, the investors in those loans know that their investment is guaranteed by the U.S. Government.  Because of this,...

Interest Rates – What Happened?

Looking out over the next few months, most analysts are still predicting interest rates to show improvement.  They have risen too high too quickly, according to their argument.  This seems reasonable.

Did the Fed Just Lower Mortgage Rates?

Until lenders work through the surge in their pipeline, we won’t see lower mortgage rates. In my experience, this will take at least a month, possibly as long as three.

Interest Rates Plunge – Is There a Bottom?

Interest rates plunged over the last two weeks. The 10-year bond has never been this low in history. Margins have never been this high for lenders. Lenders are changing their pricing multiple times each day. We are in completely uncharted waters. What happens now? To be honest, we can only guess.

Why Are Interest Rates Dropping in February?

"...there is room for retail interest rates to come down a bit – somewhere between 0.125% and 0.250%"