Mortgage Rates Hold Steady Despite Fed Rate Expectations!
Mortgage Rates are flat this week, even after the Fed 50bps rate cut. The real news came after the cut, when the Fed released its updated Summary of Economic Projections (SEP), which includes the well-known “dot plot.” The dot plot illustrates where each Fed member expects the Federal Funds Rate to be over the coming years and often causes significant volatility in the bond and mortgage rate markets.
We saw rates increase slightly on Wednesday and Thursday as a result, but a modest recovery on Friday (today) left mortgage rates almost unchanged for the week—a stunning level of stability considering the market’s high expectations.
Bottom Line: This calm in the mortgage rate market suggests that the Fed’s more favorable rate outlook was already priced in by the time the SEP was released. Going forward, it’s likely that major shifts in economic data will drive any significant changes in mortgage rates.
SOURCE & AUTHOR |
Keith Murphy Branch Manager – Essex Mortgage NMLS #330827
Direct: 714-309-1140
Apply: www.GoTeamMurphy.com
