🚨 THE FED JUST RAISED RATES!
But that does NOT automatically mean mortgage rates are going higher.
The Fed raised its benchmark rate 0.25% to 3.75%-4.00%.
Here’s what most people miss:
🏦 The Fed does NOT set mortgage rates.
📈 The bond market matters much more.
And because investors were already expecting this hike, it may already have been priced in.
So yes…
The Fed can RAISE rates while mortgage rates actually IMPROVE.
Now I’m watching bonds and what Kevin Warsh says about what comes NEXT.
Follow me. I’ll break it down as it happens.
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Russell McDonald | NMLS 290837 | Broker CA DRE 01150730
Wymac Capital Inc | NMLS 18766 | Broker CA DRE 01121628
Real Estate Broker – CA Dept of Real Estate