Today was Fed Day: a 2-day meeting that happens every 6 weeks. They announced that there will be no change in rates this time, but they are definitely making it sound like there is room for changes in September.
There were a lot of questions in the press conference, and he is continuing to say that he is following the numbers. There will be a lot of data coming out between now and the September meeting regarding inflation and the economy.
We will see what happens. But at this point, the market is anticipating a drop in the Fed Funds Rate.
Where Does that Lead Mortgage Rates?
Of course, a discussion about the Fed rates brings up the topic regarding what will happen with mortgage rates. As soon as The Fed makes a move, people start to think that it will have a direct impact on mortgage rates – which it does not.
But, the mortgage market is certainly watching things. Even looking at the market today, mortgage bonds are improving, which is good for interest rates.
September is going to be a highly anticipated meeting, but there is a lot that can happen between now and then.
As far as mortgage rates go, we are always optimistically pessimistic about the economy… because a slower economy is generally better for interest rates.
Should You Wait to Buy a Home?
We will see what is to come! But it looks like the Fed will lower things, which should pull mortgage rates down with it. Again, this is something that I have talked about so many times: this shift is probably not something that you want to wait around for.
While it sounds good to have a lower interest rate, the reality is that lower rates are going to push a bunch of people into the market, which will drive interest rates up. That’s just the way it goes.
So, waiting around to get into the market doesn’t really make sense. There are always options to make a move. If you need help running numbers and want to take a look at your personal situation, then I would love to help you out any time. Reach out and we’ll talk about the details!