June 2018 Fed Funds Rate Hike & Home Loan Rates

On June 13, 2018, The Fed Funds Rate was increased to 1.75% to 2.0% and The Fed promised to raise it 2 more times this year (Sept and Dec).  If your clients are wondering how this impacts their home buying prospects the information below may be helpful. Fed Funds Rate VS Home Loan Rates The FED FUNDS RATE & HOME LOAN RATE connection is often misunderstood. In fact, many consumers hear “Feds hike rates” and assume mortgage rates are included. I put the chart below together showing the … [Read more...]

Soybeans Push Mortgage Rates Lower?

Thanks to soybeans, air planes and cars – mortgage rates may drop.  Of course I am referring to China’s proposed $50 billion in US trade tariffs on aircraft, autos and Edamame. Apply for a Home Loan  Team@JeremyHouse.com 602.435.2149 Stocks, Bonds & Home Loan Interest Rates Why would this news make mortgage rates possibly drop?  We call it a “flight to quality”.   Here is how it works.  Consider the following truths: Investors can invest in Stocks or Bonds Stocks represent the … [Read more...]

Fed Rate Hike | Mortgage Rates Fall

March 2017 -  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 indicate they are considering 2 additional 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” … [Read more...]

Home Loan Rates Face Jobs Data

The Jan 7th, 2017 “New Jobs” and “Unemployment Rate” data is a potential market mover.  If the data comes in around 160k new jobs and 4.7% unemployment we should see the mortgage rate rally from 2017 week 1 continue on into next week. Apply for a Home Loan Team@JeremyHouse.com 602.435.2149 Some have called the 9 week post-election rate increase the “Trump Tantrum.” It reminds me of “Taper Tantrum” which was a 1 week rate jump in the summer of 2013.  Is an increase of $31.06 per … [Read more...]

Mortgage Rates and The Election

Once every 4 years clients hold their breath to see how election day impacts home loan rates.  How does Nov 8th actually impact mortgage rate trajectory? Hip shooters simply predict “in election years rates go up…” or “in election years rates go down.”   Reality check - presidential elections alone have zero impact on mortgage rates.   The actual president elect and the direction their agenda will take our nation is what can impact mortgage rates.  The relationship between the president … [Read more...]