It’s Fed Decision Day – But It May Not Be What You Think

Filed under: Market Comentary

Fed decision day has rolled around again, and I often highlight this topic in my video to share awareness about what is happening in the industry. The FED is finishing up their 2-day meeting today and should be finished shortly.

Will Rates Drop?

When the Fed meets, it is common for people to reach out to me to ask about how the decision will impact rates. The prediction is that the rates will drop this time around, with some people suspecting that the adjustment might be as high as a quarter percent or even more.

Reminder: We Aren’t Talking about Mortgage Rates

Every time the Fed meeting hits the news headlines, I need to remind everyone that this decision in no way, shape, or form correlates directly with mortgage rates. Even though it doesn’t directly correlate, it is big economic news – which means that it can impact the overall economy, which can have an impact on interest rates.

Most likely, the decision will not affect mortgage rates. But, what is noteworthy is what happens after the decision. In the press conference after the meeting, the prepared statement can be analyzed to see what has changed since the last statement about the economy.

As always, the devil is in the details! From a mortgage rate perspective, things could move in either direction.

Staying Updated in the Industry

Stay tuned; I will always keep you updated about what happens with the announcements and trends. For anyone that I am working with currently, know that I am watching the rate closely. We are ready to pull the trigger quickly if things move in the wrong direction, helping you get the best interest rate possible. On the other hand, if we start moving in the right direction, it is important to be patient to dial in the deal.

Don’t hesitate to reach out if you have questions; I’m always here to assist and guide your mortgage financing decisions.

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