Mortgage Charges Edge Greater Once more Regardless of Boring Fed Minutes
Mortgage rates By no means have skyrocketed, but they have gone up in seizures and beginnings in the past 2 weeks. Today was just one more page in that story, despite a relatively friendly response to the Fed protocol.
What are the Fed Protocols? Now you can ask! If you’re familiar with the term “meeting minutes”, that’s basically what we’re dealing with. In the case of the Fed, the minutes provide a solid summary of the discussion that took place during the Fed’s monetary policy meetings. These can be extremely important events for the financial markets – especially the bond side of the market (bonds dictate interest rates, including on mortgages).
Even though it has been three weeks since the last Fed meeting, traders are still looking forward to clues about future Fed decisions. In today’s case, the fear came in the form of a bond market weakness ahead of the protocol (weaker bonds mean higher interest rates), followed by a post-protocol rebound, which turned out to be pretty boring.
What did the Fed say? In not so many words: “nothing new.” All the findings from the minutes have long since surfaced in the numerous speeches made by the Fed in the past three weeks. Additionally, a lot has changed during this period in terms of the delta-driven Covid resurgence (a major concern for the Fed). Had the minutes been unkind, many mortgage lenders would have been able to raise rates again this afternoon. As it stands, we only got away with the moderate rise at the start of the day (which even yesterday was more of a contributing factor to the bond market’s weakness).
How does this apply to mortgage interest? The average lender is now exactly the price of latest Monday morning. Conventional top-class 30-year fixed interest rates are close to the 3% mark, depending on the scenario. Rates continue to vary significantly between lenders.