Saturday, May 31, 2025

Latest

US Mortgage Rates on the Rise Following Fed’s Comments

US mortgage rates inched higher on Thursday to around 3.25%— the highest since mid April, following Fed Chairman Jerome Powell’s comments regarding the economy’s path to recovery.

Following the FOMC’s two-day meeting this week, the Fed indicated that it may begin to hike interest rates come 2023, but stopped short of providing a timeline of cutting back its extensive bond-buying program. “You can think of this meeting that we had as the ‘talking about talking about’ meeting,” Powell explained to reporters. In addition, the infamous “dot plot,” which depicts each FOMC member’s rate expectations as a dot, suggested that there will be not one, but two interest rate hikes before 2023.

Although mortgage rates do not track the Fed’s rate— which remained unchanged on Wednesday, they do follow the the yield on the 10-year Treasury, which jumped higher. In addition, mortgage rates are also influenced by the amount of mortgage-backed securities the Fed buys, which ultimately caught investors off-guard, causing mortgage rates and bond yields to rise by more than expected.

“Markets were somewhat surprised by the Fed’s rate hike outlook. Granted, the Fed Funds Rate doesn’t control mortgage rates, but the outlook speaks to how quickly the Fed would need to dial back its bond buying programs (aka ‘tapering’). Those programs definitely help keep rates low,” explained Mortgage News Daily chief operating officer Matthew Graham.


Information for this briefing was found via the Federal Reserve and Mortgage News Daily. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Alamos Gold Q1 Earnings: The Inside Scoop

Cerrado Gold Q4 Earnings: The Turnaround is Working

B2GOLD Q1 Earnings: Revenue Up, Production & Cash Flow Decline

Recommended

Canadian Copper: The $172M Combined Strategy PEA

ESGold Begins Concentration Tests Ahead Of First Production

Related News

Fed’s Reverse Repo Soars to Record $1.6 Trillion as Economy Bursts With Liquidity

In yet another sign that the Fed is undoubtedly contributing to flaming-hot liquidity levels, latest...

Saturday, October 2, 2021, 03:02:00 PM

Fewer than 10% of Canadians Can Afford A House

Toronto-based economist Will Dunning climbed up on a soapbox over at the Globe and Mail...

Tuesday, April 25, 2023, 07:27:00 AM

Canadian Home Sales Soar to Another Record in March

Canadian home sales soared to yet another record in March, as increased housing supply slowly...

Friday, April 16, 2021, 11:42:00 AM

Fraud-Riddled Ontario Real Estate Developer Defaults On Payments To Fortress Victims

Ontario-based real estate developer Sunrise Homes finds itself in a precarious situation, having defaulted on...

Wednesday, October 11, 2023, 02:51:00 PM

Infestation! The Gold Bugs are Multiplying

For the moment, the stock market is not concerned with the inflationary effects of $5...

Monday, April 13, 2020, 06:44:36 PM