If you are shopping for a new home or about to start refinancing, consider yourself alerted. Thirty-year rates are around four percent, and rates for FHA mortgages and VA loans are even much lower. Once the Fed adjourns, rates will be a lot different. The thing is, analysts really don’t know whether rates will go up or go down.

fed-funds-mortgage-rates

How Mortgage Rates Connect To The Fed Funds Rate

It’s a common belief that the Federal Reserve “makes” consumer mortgage rates. It doesn’t. The Fed doesn’t make mortgage rates. Mortgage rates are made on Wall Street. The Federal Reserve has no direct connection to U.S. mortgage rates whatsoever. Here’s proof: Over the last two decades, the Fed Funds Rate and the average 30-year fixed rate mortgage rate have differed by as much as 5.25%, and by as little as… Read more at The Mortgage Reports

The quarter-point increase in the federal funds rate by the Federal Reserve Board likely will change some of the terms by which you access credit or borrow money. If you want to know what this means for your bank account,  credit card or mortgage loan, below is a detailed breakdown of what may happen.

home_equity_loan

How the Fed rate hike affects your wallet

The economy, the Fed and inflation all have some influence over long-term fixed mortgage rates, which generally are pegged to yields on U.S. Treasury notes, so there’s already been some creep up from record-low levels since the election and well before the Fed made an official move… Read more at CNBC.com

How a Federal Interest Rate Hike Impacts Mortgage Rates

When the Federal Reserve announces a change in interest rates, it makes headlines. But does the federal interest rate directly impact your mortgage rate? See what Windermere’s Chief Economist, Matthew Gardner has to say… Watch it here