<\/p>\n
On some occasions, a rate announcement from the Federal Reserve (even one that results in no change to the Fed Funds Rate) can cause a huge move in mortgage rates. Today was not one of those days, but in its defense, it was never that likely to be.<\/p>\n
In order for a Fed announcement to have a big impact, it has to surprise the market in some way. A rate cut (or absence thereof) is rarely a surprise these days. Instead, the market is more likely to receive new information via the Fed’s economic projections and the Chair’s press conference.<\/p>\n
Economic projections come out every other meeting and this wasn’t one of them. So any chance of excitement rested with Powell’s press conference. But Powell stayed perfectly on-script, striking a balance between hope and caution.<\/p>\n
Financial markets agreed. There was essentially no reaction to any of today’s Fed events in stocks or bonds. Flat bonds = flat mortgage rates all else equal. Today’s average rate was microscopically higher than yesterday’s, but that happened well before the Fed announcement and not for any specific reasons.\u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
On some occasions, a rate announcement from the Federal Reserve (even one that results in no change to the Fed Funds Rate) can cause a huge move in mortgage rates. Today was not one of those days, but in its defense, it was never that likely to be. In order for a Fed announcement to […]<\/p>\n","protected":false},"author":1,"featured_media":2772,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[932,2032,153,721,862,861],"class_list":["post-2771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-barely","tag-ends","tag-mortgage","tag-rate","tag-streak","tag-winning"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/2771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=2771"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/2771\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/2772"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=2771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=2771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=2771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}