When you're thinking about buying a home, you may hear a lot about mortgage rates going up or down. But have you ever wondered what causes these changes? One of the biggest influences on mortgage rates is the Federal Reserve, often called "the Fed." While the Fed doesn’t set mortgage rates directly, its policies play a major role in how much you’ll pay for your home loan. Let’s break it down in simple terms: What is the Federal Reserve?The Federal Reserve is the central bank of … [Read more...]
What’s Ahead For Mortgage Rates This Week – May 3, 2021
Last week’s economic reporting included readings from Case-Shiller Home Price Indices, data on pending home sales, and a statement from the Fed’s Federal Open Market Committee. The University of Michigan released its Consumer Sentiment Index and weekly reports on mortgage rates and jobless claims were also published. Case-Shiller: February Home Prices Rose at Fastest Pace Since 2006 National home prices rose at a seasonally adjusted annual pace of 12.00 percent, which was the fastest … [Read more...]
What’s Ahead For Mortgage Rates This Week -March 23rd , 2020
Last week’s economic reports included readings from the National Association of Home Builders on housing market conditions, Commerce Department readings on housing starts and building permits issued and National Association of Realtors® reporting on sales of previously-owned homes. The Federal Reserve canceled the scheduled meeting of the Federal Open Market Committee and Fed Chair’s press conference, but the Fed did lower its target federal funds rate early in the week. … [Read more...]
Could Fed Interest Rate Hike Help Home Buyers?
News of the Federal Reserve hiking interest rates appears to have caused unnecessary panic among people poised to purchase a first home or a larger one for a growing family. Headlines and news reports that talk about interest rates being at their highest since 2014 can be alarming. Announcements from the Fed that rates would increase four times in 2018 and again in 2019 seems downright scary. After all, isn't it logical that increased interest rates mean that monthly mortgage payment could … [Read more...]
