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Articles Recently Tagged: The Fed

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Benchmark Mortgage Rate Plunges Back Under 5 Percent

Benchmark Mortgage Rate Plunges Back Under 5 Percent

Despite the Fed’s recent rate hikes, the average rate for a benchmark 30-year mortgage had plunged from 5.81 to 4.99 percent over the past six weeks, including a 31 basis point (0.31 percentage point) drop over the past week alone, driven by an “increased risk of a formal recession... Read More »

Benchmark Mortgage Rate Drops.  Yes, Drops

Benchmark Mortgage Rate Drops. Yes, Drops

Measured prior to yesterday’s announcement of another 75 basis point hike to the federal funds rate, the average rate for a benchmark 30-year mortgage had dropped 24 basis points (0.24 percentage points) over the past week to 5.30 percent, which was still 250 basis points and roughly 90 percent... Read More »

The Fed Abides, Hikes Rates Another 75 Bips

As projected, the Federal Reserve has just announced another rate hike of 75 basis points or three-quarters of a percent for federal funds, its second 75 basis point hike in as many months, which was an unprecedented move. As we foreshadowed at the end of last year, the higher... Read More »

Specter of an Even Bigger Rate Hike Looms

Specter of an Even Bigger Rate Hike Looms

Having dropped half a percentage point from its 13-year high of 5.81 percent last month, driven by increasing concerns of a recession and hard landing, the average rate for a benchmark 30-year mortgage has since ticked back up 21 basis points (0.21 percentage points) to 5.51 percent, which is... Read More »

All Eyes on The Fed and Projected Rate Hike(s), Again

The probability of the Fed raising the federal funds rate by three quarters of a percentage point (75 basis points) this afternoon has jumped from under 10 percent last week to over 95 percent today, based on an analysis of the futures market. As such, the benchmark 30-year mortgage... Read More »

Benchmark Mortgage Rate Climbs, Nearing a 13-Year High

Benchmark Mortgage Rate Climbs, Nearing a 13-Year High

Measured prior to the Fed’s rate hike yesterday, the average rate for a benchmark 30-year mortgage had already jumped another 17 basis points to 5.27 percent, which is 231 basis points and nearly 80 percent higher than at the same time last year and the highest average rate since... Read More »

All Eyes on The Fed and Projected Rate Hike(s)

While the Fed has only hiked the target federal funds rate by 25 basis points (0.25 percentage points) from the near zero rate which had been in place since 2018, the benchmark 30-year mortgage rate has already rocketed by over 200 basis points to a 12-year high, driven by... Read More »

Benchmark Mortgage Rate Climbs, Nearing an 11-Year High

Benchmark Mortgage Rate Climbs, Nearing an 11-Year High

The average rate for a benchmark 30-year mortgage jumped another 25 basis points (0.25 percentage points) over the past week to 4.67 percent, which is 149 basis points, or nearly 50 percent, higher than at the same time last year and the highest average rate since December of 2018.... Read More »

Make that Nine and a Near Decade High

With the probability of the Federal Reserve raising interest rates by another two (2) full percentage points by the end of the year having jumped last week, the probability of the Fed adopting a total of nine (9) more quarter point hikes within the next nine months, the probability... Read More »

Mortgage Rates Rocket to 3-Year Highs, Primed to Climb

Mortgage Rates Rocket to 3-Year Highs, Primed to Climb

The average rate for a benchmark 30-year mortgage jumped another 26 basis points (0.26 percentage points) over the past week to 4.42 percent, which is nearly 40 percent (125 basis points) higher than at the same time last year and the highest average rate since January of 2019. At... Read More »