The Fed held. That does not mean mortgage rates hold.
Today the Fed kept the federal funds rate at 3.75% to 4% by a 10-2 vote. Both dissenters wanted a quarter-point hike. Inflation remains elevated.
Buyers and Realtors, here is what matters:
The Fed controls overnight borrowing. Fixed mortgages follow long-term bonds. Bonds move on inflation expectations and what the
Fed might do next, not just what it did today.
A hold with two votes for a hike tells the bond market the fight with inflation is not over.
That is why fixed rates can shift even when the Fed does nothing.
What I am telling clients right now:
Do not wait on the Fed headline.
Get your plan, paperwork, and numbers locked so you can move when the right house shows up.
