Posts

Fed Raised Rates & Mortgage Rates Fell – Before Rising Today

The Fed raised the Fed Funds Rate 75 basis points (0.75%) yesterday, and mortgage rates largely fell in response to the news.Read More

Why Did Interest Rates Fall After The Fed Ostensibly Made Them Rise?

The Fed recently raised rates, but interest rates fell in response. This is something we see so often that I had to blog about it – to again allay some of the confusion about the Fed’s rate increases. Rates are way up now, but recently they fell at least 1/8% AFTER the Fed announced the […]Read More

Mortgage Rates Do Not Equal 10-Year Treasury Rates

The 10-Year Treasury Yield dropped almost 4/10% recently – so why didn’t mortgage rates drop that much? The 10-Year Treasury yield (interest rate) is a reflection of what it costs the government to borrow money and is perhaps the most influential interest rate/yield in the world. Hence, when the 10-Year yield drops, the media will […]Read More

What Are “Interest Rates?” Do They All Move In Unison?

This is from a training module we just updated for our now very elaborate JVM Lending Training Program©. I thought it made for perfect blog fodder, as it is information all of us in real estate and mortgages should understand. We are all so focused on mortgage interest rates that we often forget that there […]Read More

“Fed Plans to Keep Rates at Low Levels for Years” What Are “Rates?”

This blog’s subject line is borrowed directly from this WSJ article. Fed Chairman Powell stated in early June that there are no rate increases in sight and that the Fed will do whatever it has to do to keep rates down through 2022. These actions include keeping the Fed Funds rate near 0% and massive […]Read More

Mortgage Rates Barely Move; Hell Actually Breaks Loose; Fed Cuts Rates to Zero

FED CUTS FED FUNDS RATE TO ZERO; $700 BILLION IN QUANTITATIVE EASING In a shocking and surprise weekend move, the Fed cut the Fed Funds Rate to 0% yesterday – which may or may not have moved mortgage rates for reasons I explain often (cuts in short-term interbank borrowing rates don’t often translate to cuts […]Read More

Rates Down Despite Fed’s 4th Increase in One Year; Why?

On December 14th, 2016, I quoted a rate of 4.0%* in this blog. Today I will quote 3.75%. It is interesting that 30 year fixed rates have fallen 1/4 percent over the last year even though the Fed has ostensibly increased rates four times. The Fed increased rates yesterday again and 30-year rates are lower […]Read More