Mortgage Rates And Recent FED News

Dated: 12/22/2015

Views: 1270

In economic news, the FEDERAL RESERVE did decide to raise the benchmark “Federal Funds Rate” at the conclusion of their long-anticipated December meeting last week.  Most of the entire market was expecting this……….even despite it being the first time the FED has raised this rate since 2006. So in reality, it was a rather unprecedented move given they haven’t previously "DARED" to do so in the last 9 years. Interestingly, overall mortgage rates really have not changed much since the Fed announcement. So it just goes to show, you can never predict what the market will do.  At the same time, this is also because of the fact that the Federal Funds Rate that the FED controls is not DIRECTLY tied to most long-term mortgages. There’s absolutely a tie/correlation, but it’s just not a direct 1-for-1 relation. The Fed Funds Rate is actually more tied to “ARM” loans and definitely to Home Equity loans.  So I think the market’s long anticipation and expectation of this FED move kept markets from overreacting to the news too much. This isn’t to say rates still couldn’t take a quick spike upward at any time. And it’s still pretty much a given that mortgage rates in the long-term will at some point definitely rise more since the government will eventually stop its reinvesting/purchasing of Mortgage-Backed Securities (which they only did to stabilize the economy back during the market collapse of 2008-9 and has been 'falsely' keeping mortgage rates low ever since) and turn back over the liquidity of the mortgage markets to all the commercial banks.  

Image title


Jon Maguire

NMLS ID: 204787 

Senior Loan Officer – The Maguire Team

FIVE STAR PROFESSIONAL Industry Award Winner (as seen in “Atlanta Magazine” 8/2013)

Academy Mortgage Customer Service Award Winner – 2010, 2011, 2012, 2013

5565 Glenridge Connector, Suite 400

Atlanta, Georgia 30342

Cell: (770) 331-7500

Fax: (404) 835-9663

Branch Main: (404) 574-2600

Email: jon.maguire@academymortgage.com

www.academymortgage.com/jonmaguire

** You can also reach my Assistant, Jeanie Koehler, at (404) 574-2627 **

GA Residential Mortgage License: 28208  |  Academy NMLS #3113  |  GRMA#20505 |  EQUAL HOUSING LENDER

--------------------------------------------------------------------------------------------------------------------------------------------------------

Academy Mortgage Facts:

* #1 Ranked Independent Mortgage Lender for Purchases in the U.S. (per CoreLogic Market Trac)

* Over $5.4 BILLION in mortgage funds provided to clients across the U.S. in 2014

* DIRECT Lender providing Conventional, FHA, VA, USDA, 2nd home & Investment Loans, Refinances, and MORE

* Loan Setup Coordinator, Processors, Underwriters, Pre-Closers all IN-HOUSE at our local Atlanta Branch

* Founded in 1988 and has grown to 200+ Branches in 48 states, and expanding

Blog author image

Greg Sanders

Greg Sanders is the CEO of The Sanders Team Real Estate. Greg has over 15 years experience technology, digital marketing, and operations. In addition to his real estate experience, Greg also serv....

Latest Blog Posts

3 Things Buyers Need To Know About The Current Market

Are you considering purchasing a home?  If so, below are three key things to consider about the state of the current real estate market in north Metro-Atlanta.  1. With only 2.4 months of

Read More

Top 10 Reasons To Get PreApproved BEFORE Looking At Homes

Vast majority of Sellers (and/or their Real Estate Agents) will REQUIRE a Pre-Approval letter to take your offer seriously The Credit Check “myth”. Credit checks typically affect credit

Read More

Breaking News On Market Rates

The FEDERAL RESERVE decided to INCREASE the Federal Funds Rate today. This was the FIRST time they’ve raised the rates since this time last year, and they hinted at 3 possible increases in.

Read More