About an hour before market close Jerome Powell addressed the nation with the Federal Reserve’s plan to increase rates. He started by raising their rate by .25% (I was sure it would have been .5%. Guess my crystal ball still isn’t working). He went on to say he expects thereto be 7 raises this year. With 9 months left in the year that would mean a Fed raise almost every month! He also made the statement, “If appropriate the Federal Reserve will move more quickly.” So we know we have a .25% rate raise but nothing else is set in stone.
The raise happened, and the stock market went up across the board. Along with that, after the raise, word is retail mortgage rates are going down on Powell’s message. Well, no reason why it shouldn’t as the mortgage industry has already built in about a 1.125% increase in rates across the board over the last few months. We will see how rates are affected in the morning. While many people have been telling me their rates are falling I priced my series of test scenarios and no change.
Consulting the Magic 8 Ball this time. Keep a close eye on rates. I doubt they will drop permanently but we may get a few days of lower rates we can take advantage of. If you are not on our daily rate update list, now would be a good time as we may have a window of opportunity over the next few days to a few weeks. Email us at rates@ilovemylender.com and ask to be added to the Rate Update list. Stay tuned.
