Three words from Fed Chairman Kevin Warsh have Wall Street paying VERY close attention:
“dose of accommodation.”
The Fed just raised rates 0.25%, but Warsh described the move as removing a “dose” of accommodation rather than simply tightening monetary policy.
That raises a huge question:
How much accommodation does he think is still left?
Markets are already reassessing what comes next, with the probability of another hike at the October meeting rising substantially.
And for homebuyers and homeowners, remember:
🏦 The Fed doesn’t directly set mortgage rates.
📈 The bond market moves on EXPECTATIONS.
🏠 Mortgage rates can react long before the next Fed meeting.
The Fed made its move Wednesday.
Now the market is trying to figure out how many more could be coming.
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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 #FederalReserve #MortgageRates #InterestRates #Economy #HousingMarket