Roll of the dice.
That’s what I say. This week’s big news is the Fed announcement on Wednesday. There’s a lot of speculation on what the Fed’s move will be. Some say that with all of the cutting in the past few months that inflation will be a big issue. Others feel like we still haven’t fought off the pending recession and a reversal (fed hike) would be a horrible move.
Others Are Saying
I’m on the same page with Dan Green over at TheMortgageReports.com. I think they should meet in the middle and hike a small amount. In the past, the Fed has always moved in .25 increments. Why don’t they just move an eighth? It makes sense to me. I’d say it will never happen – but that’s just my two cents.
The decision will be a big market mover, but no one is really sure what the Fed will do or more importantly what they will say.
How’s All Of This Work?
A quick refresher – inflation is horrible for the bond market. If traders are concerned about inflation, rates will climb (and value of bonds will go down). If traders feel like the Fed is doing everything they can to work against inflation, rates will decrease (and value of bonds will go up). Getting inside the head of the Fed is somewhat tough anymore – so Wednesday will be an important day. The Fed tries to stay in between 1%-2% and even though we’re a tad above it at 2.1%, it’s not out of control.
Another huge report comes out on Friday, the Personal Consumption Expenditures and Core Personal Consumption Expenditures (CPE). This also happens to be the Fed’s favorite way to measure inflation. Too bad it’s two days after the Fed’s decision huh?… Oh well, it will still have a big impact on bonds. Honestly, I wouldn’t be surprised if mortgage rates move as much as 1/2%. Nobody’s really sure which direction.
Here’s this week’s economic calendar:
How Do You Keep Posted on the News?
I’ll do my best to keep you posted throughout the week via Twitter. If you’re interested in finding out more about what effects mortgage rates and which direction they’re headed, feel free to follow me!
Work With Mortgage Professionals In The Advice Business
It’s important to recognize that advice is extremely valuable when looking for a mortgage. The right advice can literally save you thousands of dollars, while the wrong advice can cost you the same.
Why Am I Posting A Calendar?
I provide this weekly news update because too often when we’re shopping around, we ask the wrong questions. The first thing you’ve got to have your antenna up on is economic news if you want to have any idea what direction rates are moving.
So What Are Mortgage Rates Currently?
I get this question all too often. If I’m being fair.. and honest (which is my policy). I would be doing you a huge dis-service to just quote a rate. Truth be told, there are literally 27 different factors that go into a custom rate quote. There are also thousands of programs (constantly changing as well). It’s extremely important that you are educated on what is available and most importantly what is the best mortgage plan for you to implement.
It’s natural to have a list of questions. I’d love to help work through them with you and educate you on what you need to know about the mortgage process. Everything from how to pre-qualified to what to do after closing!
It’s what we do, and it would be my honor to add you to our list of raving fan clients. If you’re currently looking for a mortgage loan or know someone that might have questions about one, please have them contact me. I’d be happy to assist them. It’s literally what I love doing! I promise to take great care.
