The Fed’s raised the Federal Funds rate once again (.25%), and once again mortgage rates moved down, why you may ask. Mortgage rates are loosely tied to the 10 yr. Treasury yield, which is determined by the marketplace (auction). Everyday Banks, traders and sovereign governments buy and sell treasuries, so the yield (rate) is constantly changing. Financial market activity demonstrates the sentiment of the market and the market (traders, investors and alike) believe Jay Powell has completed his upward push on the Federal Funds rate. Whether he has or has not remains to be seen, but the market has spoken (for now). The 30 yr. fixed rate continue to hover around 5.9% (depending upon a host of factors including: Loan amount, down payment, credit scores, program type, real estate type and more…) and I’m hoping that rate will drop to 5.25% by years’ end. That said, hope is not a plan.

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