Video Transcript
The Federal Reserve meets beginning today for its eighth and final scheduled meeting of the year. The group is expected to lower the Fed Funds Rate by a quarter point to a range near 3.75% but that doesn't mean the mortgage rates will come down, too, because on a Fed Day, what the Fed does is always less important than what the Fed says. How it signals for the future of its monetary policy. Is it worried for inflation? Will it buy more bonds from Wall Street? What now threatens the U.S. economy? These are the things that Wall Street is listing for when a Fed Chairman makes its comments which, in turn, is what affects market mortgage rates. Short of surprise statement, don't expect rates to do much. Statistically, Fed weeks are more calm for mortgage pricing than non-Fed weeks. I'm Dan with Homebuyer.com. Happy homebuying.
The Fed Could Lower Rates By 0.25, But What About Mortgage Rates?
The Federal Reserve is expected to lower the Fed Funds Rate by 0.25% to a range near 3.75% during its final meeting of the year. However, this change may not lead to a decrease in mortgage rates, as market reactions depend more on the Fed's future monetary policy signals.
Video Transcript
The Federal Reserve meets beginning today for its eighth and final scheduled meeting of the year. The group is expected to lower the Fed Funds Rate by a quarter point to a range near 3.75% but that doesn't mean the mortgage rates will come down, too, because on a Fed Day, what the Fed does is always less important than what the Fed says. How it signals for the future of its monetary policy. Is it worried for inflation? Will it buy more bonds from Wall Street? What now threatens the U.S. economy? These are the things that Wall Street is listing for when a Fed Chairman makes its comments which, in turn, is what affects market mortgage rates. Short of surprise statement, don't expect rates to do much. Statistically, Fed weeks are more calm for mortgage pricing than non-Fed weeks. I'm Dan with Homebuyer.com. Happy homebuying.
