.Treasury yields had moved up in anticipation of the Federal Reserve meeting Tuesday. Mortgage rates followed suit, but are still lower than they were last week. The 30-year fixed rate mortgage fell 3 basis points to 3.14% while the 15-year mortgage fell 5 basis points to 2.57%.
In the past, the Federal Reserve would make policy decisions based on their economic forecasts. However, these forecasts were usually off the mark especially when it came to inflation. This time around, the Fed is not planning to act until inflation not only happens, but reaches 2%. As such, experts predict the Fed won’t announce any policy changes until the end of 2021, and won’t implement any changes until early 2022. Until then, they will most likely maintain their $120 billion in monthly asset purchases and keep rates near zero. Meanwhile, housing prices logged double-digit growth for the third month in a row. According to the S&P CoreLogic Case-Shiller Index, February experienced 12% annual growth. However, these price increases are expected to slow as more people list their houses and as the pool of buyers dries up.