09/05/2024
Ristine Team Real Estate News for you.
Now that itâs September, all eyes are on the Federal Reserve (the Fed). The overwhelming expectation is that theyâll cut the Federal Funds Rate at their upcoming meeting, driven primarily by recent signs that inflation is cooling, and the job market is slowing down.
Why a Federal Funds Rate Cut Matters
The Federal Funds Rate is one of the key factors that influences mortgage rates â things like the economy, geopolitical uncertainty, and more also have an impact.
When the Fed cuts the Federal Funds Rate, it signals whatâs happening in the broader economy, and mortgage rates tend to respond.
As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), points out: âOnce the Fed kicks off a rate-cutting cycle, we do expect that mortgage rates will move somewhat lower.â
And any upcoming Federal Funds Rate cut likely wonât...
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Now that itâs September, all eyes are on the Federal Reserve (the Fed).