The Fed Is Meeting!
It is widely expected that the Fed will be cutting the Fed Funds Rate (FFR) at Tuesday’s meeting. Remember, just because the Fed Funds Rate is going down doesn’t equate to lower mortgage rates. In fact, more often than not, this translates into higher rates on an account of fears of inflation.
Beyond the decision on the Fed Funds Rate, it’s also been made very apparent that Ben Bernanke is willing to do what it takes to give the credit markets the capital they need to continue delivering money to those who need it and qualify for it. I wouldn’t be surprised if other unique announcements are made on Tuesday’s official statement.
What to Watch This Week?
Since there’s always a lot going on, I like to pick out the two most likely ‘market moving’ reports each week. If I had to pick a couple of reports to watch, they would likely be:
- Consumer Price Index (CPI) – Tuesday – I talk about it all the time. Inflation. It’s the enemy of mortgage rates and if this report shows any concerns of inflation, plan on seeing mortgage rates heading higher. Estimates show that this should come in weak with worries on the economy. This means that if increases are even minimal, we’re still going to see a big impact on mortgage rates.
- Fed Meeting Decision and Comments – Tuesday – The Fed meets Monday and will announce on Tuesday (at 2:15ET) their decision on what they’ll be doing with the Fed Funds Rate. It’s widely expected that the Fed will cut, which could lead to higher rates. More importantly, the Fed may take other action other than just cutting rates. This could have a huge impact on mortgage rates.
In order to find out what happens, be sure to follow me on Twitter (@tylerosby). I’ll be commenting live as things happen.
You Can Stay Updated!
I’ll be following things as they happen with live mortgage bond quotes and do what I can to keep everyone informed through Twitter. My clients always get the advice first, so I’ll try to filter though as quickly as I can.
Here’s this week’s economic calendar:
As a Consumer, 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. Some mortgage professionals really don’t know what mortgage rates are based on, period. If you want to get the best deal, having a professional that can give you that type of advice is extremely important.
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 You Say, 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 disservice 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 personally 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. I can help with everything from how to pre-qualified to what to do after closing (where I will continue working for you)!
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.
