Fed Rate Hike | Mortgage Rates Fall – 03/15/2017

Fed Funds Rate UP & Mortgage Rates DOWN

Mortgage Rates Drop on Fed Rate Hike

Hot off the press, the Fed voted 9-1 to hike the Fed Funds Rate by .25% today – and mortgage rates dropped considerably immediately.  The notes from the Fed’s meeting today also indicate they are planning 2 more possible Fed Funds rate hikes in 2017 (depending on economic data and indices such as inflation).

With our current economic and political environment, this rate hike has and will have more press than most.  While many hear “rate hike” and and do not differentiate which rates were actually “hiked” today.  It’s important to remember:

FED FUNDS RATE HIKE   DOES NOT EQUAL   MORTGAGE RATE HIKE

Mortgage Rates Respond to Fed Rate Hike 03/15/2017

Currently, mortgage rates are LOWER after the announcement of the .25% Fed Funds Rates hike.  There is much more that goes into whether or not mortgage rates increase.  This improvement in mortgage rates could continue, or it could do a wild 180 degree turn and head south.  Too soon to tell.

What’s Next?

For now, today is one of those days where buyers can celebrate all the way around – mortgage rates are better AND their stock portfolio is better at the same time.

By Jeremy House

 

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Jeremy is the Founder of The HOUSE Team and a Sr. Loan Officer/Branch Manager with PrimeLending. Over the past several years he has ranked in the top 1% of all loan officers nationwide and one of the top 200 loan officers in America. In the mortgage industry, the devil is in the details. Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

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