The Federal Reserve raised its key short-term interest rate by a quarter percentage point today.  The decided to continue their same path, raising the short term rate to try to lower inflation.  This is despite some financial turmoil following the collapse of two investment banks. Some had thought maybe the Fed would not raise rates…

The Federal Reserve uses its ability to raise and lower the Fed Funds Rate to tighten both financial conditions and lending standards. When they raise that rate, it results in reduced lending and investment, which leads to slowing economic activity, and that usually brings on a recession. The most recent events of two large investment…

The second and third largest bank failures in history happened over the weekend.  And the markets reacted as you would think they would.  Stocks panicked.  Money moved to bonds.  Mortgage Interest Rates fell significantly.  Anytime bond gain and stocks slide it is good for mortgage rates.  But also the markets were thinking that maybe it’s…

The last time 30 year fixed mortgage interest rates were higher than now you would have to go back to November 9th, 2022.  It was economic data yet again that caused rates to go up this week.  Thankfully, it wasn’t data that was very consequential to the United States ecnonomy,  However, there are more important reports…

We had a nice respite from higher mortgage rates for a few weeks.  30 year fixed interest rates got as high as 7.25% around the first of November 2022.  Then they slowly started to go down reaching as low as 5.75% the end of January.  Today 30 year fixed rates are around 6.50%. Why?  Still…

Will there be a recession?  What will mortgage rates do this year?  Will house prices go down this year?  So many questions about the economy and with good reason.  2022 was a very unique year in the United States economy and it affected housing and mortgage lending significantly. First, will there be a recession?  Nobody…

The Federal Reserve increased their benchmark interest rate by .50%  yesterday.  So, does that mean today mortgage rates are .50% higher.  It does not.  In fact, some lenders interest rates even dropped by 1/8% after the Fed move.  Why is this? Well, it was no surprise that the Fed was going to raise their rate…

Mortgage Interest rates have been super boring for a while.  Ever since November 10th when the last Consumer Price Index (CPI) was released, the bond market has not had much to react to.  That CPI report is the most significant indicator of inflation, and inflation is the driver of bond yields, and thus mortgage rates. …

“Both consumer homebuying and home-selling sentiment are significantly lower than they were last year, which, in our view, is unsurprising considering mortgage rates have more than doubled and home prices remain elevated,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Following eight months of consecutive declines, the HPSI did tick up slightly…

Last month we saw rates drop from the low 7%’s to the mid 6%’s.  It happened on a single day and was the record for the most mortgage rates had dropped in one day – about .50% across the board.  Yesterday we saw them drop again, about .25%.  So today you will find lenders quoting…