Fed Day – Green is Good

It was highly anticipated that on Fed Day this week that rates would be raised by half a percent. One thing I want to point out with this Fed announcement is something that I’ve shared in the past: when the Fed raises rates, mortgage rates don’t correlate. They are two different things.

Good Trends in the Numbers

In this video, you can see green numbers – which is a good thing. We can tell that the market is responding positively.

Today is a great example of how the Fed can increase rates and it actually helps mortgage rates. There’s a lot that goes into it and much that we can dissect. But I’m not going to get into those details.

The most important thing that you need to know is that the Fed did in fact increase the Fed fund rate by half a point, but that doesn’t mean that mortgage rates went up. We’re actually seeing a downward trend.

Tomorrow could be a different story! But in the moment, we’re seeing good movement in home mortgage interest rates as the market responds to the Fed announcement. Things are moving in the right direction, and it’s a significant move for one day.

The Fed Can’t Change Your Mortgage Rate

Sometimes, when these Fed announcements happen, I have people reaching out to me wanting to lock in a lower mortgage rate because they think that the Fed will increase their interest rate. But I’m here to reassure you that’s not how it works.

I’m always keeping you updated on the changes that are happening in the market. And I’m happy to answer your questions or provide recommendations for your personal situation. If you need help getting financing to buy a home or refinancing your current home, then reach out to me any time.