Fed Funds Rate

“I’m on my way, I’m on my way home sweet home”- Home Sweet Home, Motley Crue

Last Tuesday, many politicians went “home” after the midterm election results and the day ended with a split of power between the House and Senate.

The markets and the Fed will now be watching to see if the split Congress can deliver more fiscal policy or get caught in political gridlock. The latter would likely slow the pace of future Fed rate hikes.

Speaking of the Fed, they met on Thursday and, as expected, didn’t raise rates. However, they offered some good news to both Stocks and Bonds by saying the labor market remains strong and inflation remains in check.

If inflation doesn’t rise as the Fed forecasts through 2021, it is difficult to see long-term rates moving too high as inflation is the main driver of long-term rates.

Despite the bond-friendly Fed talk, home loan rates could not improve this week as investment dollars found their way back into Stocks which have rebounded nicely from the recent selloff.

Home loan rates remain near historically low levels and should continue to do so for the foreseeable future.

After last week’s risk-filled events in the midterm elections and Fed meeting, the markets will go back to being “data-dependent” this week – meaning they will watch and respond to economic reports.

The economic calendar for this upcoming week is light, but some key reports includes the Consumer Price Index inflation gauge, Retail Sales and small business optimism.

Stocks, after a rough October, have risen sharply over the past couple of weeks. If this trend continues, home loan rates will likely struggle to improve much from here.

The Bond markets will be closed on Monday, November 12 in observance of Veterans Day.

  • The Consumer Price Index will be released on Wednesday.
  • On Thursday, Weekly Initial Jobless Claims, Retail Sales, Empire Manufacturing and the Philadelphia Fed Index will be delivered.

If you or someone you know has any questions about home loan rates, please give me a call. I’d be happy to help.

Related Articles

      If you’re in the market to purchase a home and concerned that rising interest rates could price you out of the home you’re looking at, then this article is for you. First, you need to understand what the difference in your monthly payment could be if the…
Read More of the post Why Rate Isn’t Everything

No Crash Zone. A Current Outlook on the Housing Market. By: Michael Pennington   Are you concerned that the housing market will crash like it did in 2008? That the cost of homes has skyrocketed so high that they are bound to come spiraling down and result in a market…
Read More of the post Why the Market Won’t Crash

As the weather changes, many homeowners are ready to not only get some spring cleaning done but to upgrade their home and make the most of spring this year and every other year. If you’ve wondered what home improvement projects will set your backyard up for success this season, three…
Read More of the post Three Backyard Renovations to Help You Enjoy the Spring!

Homebridge’s Diversity & Inclusion Advisory and Support Council In our continuing efforts to create a more equitable workplace, Homebridge established its Diversity & Inclusion Advisory and Support Council. This group will have two primary roles. First, to serve as a think tank for initiatives that will help foster and grow…
Read More of the post Homebridge’s Diversity & Inclusion Advisory and Support Council