The Decision
On Tuesday, the Fed decided for the third time in a row to keep things unchanged. The Fed Funds Rate will remain at 2%.
Each time the Fed has a meeting, they release a statement to accompany the actual decision on rate. It might surprise you, but the words are often more powerful than the action or inaction of the Fed in regards to interest rates.
The Actual Statement:
What Was Said?
Well, when the Fed releases their press release, they give their summary of how different sectors of the economy are doing individually.
As Dan Green over at The Mortgage Reports summed it up:
The Fed….
On Wall Street: Strains have “increased significantly”
On Employment: The workforce has “weakened further”
On Household Spending: It’s “softening”
On Inflation: It’s “been high”
What’s it Mean to Mortgage Rates?
As soon as the Fed made their decision to stay flat, mortgage rates immediately climbed as much as .50%. Traders interpret the Fed’s inaction as a danger for inflation. Especially since they openly said it’s ‘been high’. They know it’s a problem, but they’ve got bigger problems to worry about than inflation.
Were You Too Greedy?
I’m going to go ahead and say it – if you were one of the consumers “Waiting to see if things get a little lower”, you’ve missed the boat – again. With markets being as volatile as they have been over the past year, you have to see that these opportunities to lock in stellar rates have lasted between 6 and 36 hours. Time isn’t exactly on your side. Take your gains and move on. You won’t remember what rate you locked in twelve months later, trust me.
There Will Be Another Opportunity
I’m confident this isn’t the last chance to lock in at a stellar rate. However, if you’re following the news, you’re going to be late on taking action. Your mortgage needs to be under management by a professional. The market is fast and unpredictable. When opportunities present themselves, you need to know about it and be able to take action.
Where I Come In
My job as a Certified Mortgage Planner is to help manage my clients existing mortgages (at no cost) and keeping them informed on opportunities (like last week). It is important to know that there are few mortgage professionals that actively manage their clients mortgage. If you didn’t get a call or e-mail directly from your mortgage professional when this opportunity presented itself, you should consider hiring my team.
Our mortgage management services are free. When an opportunity presents itself to refinance (and it makes sense), then we refinance and I earn my fee. It’s no different than any other financing transaction you’ve ever done – my team will just reach out to you instead of you reaching out to us. Is that cool or what?
If you’d like to take advantage of our unique mortgage management services, please contact me. I’d love to adopt your mortgage and give it the hands on attention it deserves. Trust me, your decision to contact my team will pay off big time.
