Mortgage Rates Holding - Fed Announcement Coming Soon

Mortgage rates are likely to move sideways again today. All market focus today is on the FOMC policy statement coming up soon at 1:00PM.  In the meantime, stocks and interest rates are likely to drift this morning until that statement. While there is no chance of a rate increase today the statement will be gleaned for what the FOMC sees now about the economy, inflation and comments concerning the tariffs the Trump Administration is talking about.  The one thing that could push rates lower and/or increase volatility is something surprising coming from their statement, which is unlikely.

Where Are Mortgage Rates Going?                     

>>> Rates are holding in a narrow range

Mortgage rates have been confined to a tight range so far this week. With no major market moving events out yet, investors have remained in wait and see mode.That could change this afternoon, though, as we have the first notable event of the week: the conclusion of the Federal Open Market Committee meeting. That meeting will end with a written announcement at 1:00PM.

While no one expects the Fed to make any adjustments to the nation’s benchmark interest rate - the federal funds rate - investors are hoping that they will get a clue or two about when the Fed will hike next. It really depends on how they frame the big picture and the outlook into the future.

With no post meeting press conference, those clues would have to come in the form of changes to the language used in the written statement. It is not something that analysts are saying will happen, but it is not entirely out of the realm of speculation, so investors will be clued in just in case.

The 10-year Treasury - which is the best market indicator of where mortgage rates are going – is hovering at 2.97% after touching 3.00% early this morning.

Rate/Float Recommendation           

>>> Lock now before rates move higher

Mortgage rates are holding steady right now. That could make right now a great time to lock in your rate on a purchase or refinance before they begin to rise again. We still think that most borrowers are likely to get the better deal by locking in sooner rather than later.

Despite what happens in the near-term, mortgage rates are still expected to move higher in the long run so locking in a rate sooner rather than later remains the smart decision for most borrowers. If you have any further questions, give us a call or visit our website at Call The Money Man.