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Fed Raises Interest Rates: What Does it Mean to Us?

Fed Raises Interest Rates: What Does it Mean to Us?

Federal Reserve officials came and went this past week. Before they went, they raised the target range on the federal funds rate to 1.75%-to-2.00%. The range was lifted 25 basis points (a quarter of a percentage point) above the previous range.

Higher Interest Rates for Everyone

Higher Interest Rates for Everyone

Arrivederci

That’s all we can say to the lower mortgage rates that breezed by in May. Mortgage rates moved notably higher over the past week. The prime 30-year fixed-rate conventional loan led the brigade. It reclaimed the 4.625%-to-4.75% range it had abandoned for lower terrain last month.

Why Alternative Mortgages Are a Smart Choice

Why Alternative Mortgages Are a Smart Choice

Traditionally, mortgages in the U.S. are financed by banks that also operate other lines of business, like offering deposit accounts and insurance products. But today, the American homebuyer is anything but traditional, and they are looking to lenders other than banks to fill the gap. Fortunately, financial institutions continue to create innovative mortgages that fit the diverse needs of borrowers, rather than forcing consumers to conform to rigid standards. The end result is more people with the financing to afford the home they need, rather than being shut out of homeownership entirely.

A Detour to 5%

A Detour to 5 Percent

Mortgage rates dropped, and they dropped meaningfully this past week.

The rate range on the prime 30-year fixed-rate conventional mortgage dropped to 4.5%-to-4.625%. It had been ensconced in a range 13-basis-points higher for the past month. Borrowers got a reprieve.

A Reprieve, Though a Temporary One

A Reprieve, Though a Temporary One

Mortgage rates took a breather this past week. Instead of ascending, as they have for most of 2018, they eased back a few basis points. The range still holds, though. Quotes on prime 30-year fixed-rate conventional mortgages remain within the 4.75%-to 4.875% range at the national level. Quotes have been more “4.75%-ish” as opposed to “4.875%-ish” in recent days.

Rate quotes on the prime 30-year loan have eased because the yield on the 10-year U.S. Treasury note has eased. The yield spiked to 3.11%, but then retreated. The yield on the 10-year note hovers around 3%. We often note that as the yield on the 10-year note goes, so go rate quotes for long-term mortgages. Such has been the case once again.

Fed holds Steady on Interest Rates in May Meeting

5222018Steady as she goes. That's the headline out of the most recent meeting of the Federal Reserve's Open Market Committee, which ended earlier this month with little surprise or fanfare. The FOMC, the chief policymaking body of the Fed that holds sway over much of the global economy, elected not to raise its key interest rate, the federal funds rate. The committee also reaffirmed its expectation to continue on its previously planned course toward more incremental rate hikes for the rest of the year.


Coming Soon: The 5% Rate Quote

5.21.2018

Most market pundits expected this to happen four years ago, if not earlier. They expected interest rates to rise, and rise meaningfully with sustained momentum.

Rising interest rates still low by historical standards

IStock 051618

It's already been clear that 2017 was a banner year for residential real estate sales. But when it comes to projections for 2018 and a spring home sales season that's already underway, certain factors could cause the year to turn out quite differently.

The primary concern for 2018 is not necessarily home prices, although they continue to increase throughout much of the U.S. Instead, mortgage interest rates may well determine the outcome of the year for buyers, sellers and investors.


Is Four in Store?

05.14.2018

The yield on the 10-year U.S. Treasury note hovers just above 3% as we write. It hasn’t hovered this high since December 2013. Rate quotes on a prime 30-year fixed-rate conventional mortgage hover between 4.625% and 4.75%. They haven’t hovered this high in four years.

More of the Same for Mortgage Rates

05072018

The latest meeting of Federal Reserve officials came and went on Wednesday. The meeting came and went as anticipated. Fed officials held the range on the federal funds rate – an influential overnight lending rate – at 1.5%-to-1.75%.