Fed Day Today and GDP Tomorrow

There are big updates today that a lot of people are paying attention to: it was established that the Fed increased rates by 3/4 of a point. If you look at the charts behind me, you’ll see the green numbers which show positive movement for mortgage rates.

Fed Fund Rate Doesn’t Correlate to Mortgage Rates Directly

Again, this is one of those examples where just because the Fed increased the Fed funds rate, it doesn’t correlate to mortgage rates directly.

These numbers show that the mortgage rates are basically seeing that the Fed is being aggressive with trying to stop inflation, so the mortgage rates like what is happening. It results in a small improvement for mortgages.

GDP Numbers are Coming Out Tomorrow

Another big data point is coming out tomorrow: GDP. By definition, a recession is two quarters of negative growth. We already had the first quarter (last month came in at -1.6%). We’ll see what happens for next month.

Is a Recession Coming?

For now, that’s where we stand. Is a recession coming? It looks like all experts are expecting a recession to be on the horizon. But the Fed seems to act like there is still a chance of bringing it in for a soft landing. We’ll see… it will be the first time in history that the Feds had to get involved at this level and it didn’t result in a recession.

Today, the mortgage rates are cheering me up and it’s great to see a small improvement in mortgages. Don’t forget that I’m always here to answer your questions and help you find the right home financing solutions. Reach out if you need information or personal advice.