Mortgage Rates
For the second consecutive month, U.S. consumer confidence is plunging. July's official reading is its lowest since July of last year and the figures run in stark contrast to just two months ago, when the index touched a multi-year high.
At 7,333 words, the June Fed Minutes is the unabridged version of the more well-known, post-meeting press release. The corresponding press release was just 360 words. It turns out, the Fed's words are doing wonders for mortgage rates.
Mortgage rates move in response to hundreds of factors. Among the biggest influences on mortgage rates? Inflation.
As 2009 was ending, the "experts" were busy making forecasts about the U.S. economy and what to expect in 2010. Were they right?
Today, in its first meeting in 5 weeks, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged. The Fed Fund Rate remains within its target range of 0.000-0.250 percent.
The Federal Open Market Committee begins a 2-day meeting today, its fourth scheduled meeting of the year, and fifth overall. There's no expectation for the Fed to change the Fed Funds Rate but that doesn't mean consumers should expect mortgage rates to remain unchanged, too.
Mortgage rates may be dropping, but mortgage costs are not. According to Freddie Mac, the average required discount points on a conforming mortgage rate are higher by 0.1 percent since early-May.
Mortgage rates are low and they likely won't stay that way. If you've been thinking about a refinance, talk to your loan officer as soon as possible.
The Federal Reserve adjourns from a scheduled, 2-day meeting today. It's one of 8 scheduled Fed meetings for 2010. Upon adjournment, Fed Chairman Ben Bernanke & Co. will release a formal statement to the market. In it, the Fed is expected to announce "no change" in the Fed Funds Rate. Mortgage rates, however, WILL change.