A Federal Reserve FOMC Preview – April 30, 2024

Video Transcript

Today, Tuesday, marks the start of the Federal Reserve’s third scheduled meeting of the year, a two-day affair that adjourns tomorrow, Wednesday at 2 PM ET with the Federal Reserve making a statement to the markets on the health of the U.S. economy, the threats the U.S. economy faces, and the group’s progress on bringing inflation back to reasonable levels.

Over the past two years, inflation has dropped from 9 percent to just around 3%. But recently, data showed that the cost of living and the cost of running a business stopped slowing down, at least for now. And that data explains why current mortgage rates have been going back up.

Inflation is the enemy for low mortgage rates. So after the Fed’s meeting, the group is unlikely to raise or lower its Fed Funds Rate, but mortgage rates will change based on what the Fed tells us. If inflation is expected to accelerate, rise back up, mortgage rates will go with it.

If the Fed says inflation is generally under control and easing over the long term, mortgage rates will drop. We’ll have it all here on our main channel. Make sure to subscribe.

I’m Dan with Homebuyer.com. Happy homebuying.