Remember When We Thought the Fed Cutting Would Help Mortgage Rates?

Do you remember awhile back when we were anticipating The Fed dropping the funds rate and we would see mortgage rates come down? Here’s what’s happening: now, The Fed dropped rates again today – the third time they’ve dropped it.

Guess what: mortgage rates are significantly higher compared to when they started cutting rates! It’s a good reminder that The Fed funds rate really has nothing to do with mortgage rates. What’s really going on? We will figure out what happens over the next few days. Today has definitely been a rough day in the market.

Main Takeaway From the Fed Meeting

The main headline that came out in the meeting with The Fed is regarding their economic projections for next year. They are expecting fewer cuts now than they did before. This is because we have seen inflation heating up, jobs are hanging in there, and other economic factors are happening that the market doesn’t really like. Equities aren’t liking it either.

It will be interesting to see what happens in the longer term. I think there are so many wild cards in the economy right now. So, nobody knows what to expect. Who knows where we are headed!

What Should You Do?

My advice: you just need to take what you can get right now. You need to get into the market and we can always fix the rate later if we get to the point where that is a possibility.

To summarize the events of this Fed meeting: yes, I know that they dropped rates again. But this move isn’t being kind on mortgage rates. If you need personalized recommendations for your mortgage strategy, feel free to reach out and I’ll help you find something that works for your individual situation.