Rates dip in anticipation of today’s FOMC meeting

Once more, rates have reversed directions. Both the 30-year and 15-year fixed rate mortgages fell this week, with the 30-year falling 9 basis points to 3.16% and the 15-year falling 8 basis points to 2.52%. This puts them almost exactly where they were two weeks ago.


current outlook:

Today’s FOMC meeting is significant for mortgage rates. That’s because the Federal Reserve will be (1) establishing a target end date for their bond buying program and (2) charting where they believe the Fed Funds Rate should fall over the next few years on a dot plot. Because the Fed only does this four times a year, expect a lot of volatility for the rest of the week as the market digests any new information. Also up for discussion are increased consumer inflation levels and relatively low labor force participation rate (LFPR), which fell to its lowest levels in 45 years in October. In real estate news, Americans had 32% more tappable equity at the end of Q3 than they did last year. This means, on average, today’s borrowers have $178,000 in tappable equity.

Rates dip in anticipation of today’s FOMC meeting

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