Mortgage Watch Report

Mortgage Rates are moving higher after Chairman Powell raised the Fed Funds rate by another 75bps on Wednesday 11-2-2022.  Now, while raising the Fed Funds rate does not have a direct impact on Mortgage Rates, it DOES have an “indirect impact”.  You see, The Fed Funds Rate (the thing the Fed “hikes” when you hear about the Fed hiking rates) applies to overnight loans among large financial institutions.  It’s important, to be sure, but it only changes 8 times a year whereas securities in the bond market change every second of the day.  These hikes DO have a direct impact on Credit Cards, Home Equity Loan, Car Notes, and most importantly the interest cost of Commercial and Corporate Debt.  These higher cost slow down the economy which then assets (stocks and bonds) will sell off.

On Wednesday, both stocks and bonds sold off on that news (when bonds sell, it implies higher rates, all other things being equal).  Most mortgage lenders issued mid-day rate increases.  There was a mini rally yesterday giving myself and others a glimmer of hope that Mortgage Rates were reversing trend, but today we are back to selling )-:

In conjunction with this market weakness (selling is continuing today), was enough to make for a reasonably big up increase in the prevailing rate.  The average lender is getting close to the recent 20yr highs from a few weeks ago when the average conventional 30yr fixed rate was 7.37% (7.30% today up from 7.09% just 2 days ago).

Bottom Line: lots of market volatility and heavy selling means rate may continue to climb in the near future.

Here are lockable rates as of today:

















Keith Murphy Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140


About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 46 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 26 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.