APPLY NOW

Mortgage rates slightly down after Fed keeps interest rates unchanged, but not for long

marketupdate

The Federal Reserve held the Federal Funds Rate unchanged in Wednesday’s meeting, but stipulated that a December rate hike following the Presidential election is likely to occur. Mortgage rates, which had been near or at their 2-month highs, trended down after the Fed decision, as did the 10-year treasury yield.

While markets expected the decision, the likelihood of a rate hike before year-end is now at about 50%. This is due to a slightly more bullish outlook resulting from a significant policy change by the Bank of Japan to target a 0% yield on its 10-year bond.

So far, the markets appear to approve of Japan’s new monetary policy measures and the Fed’s commitment to long-term low interest rates. The stock markets also rallied, with the Dow Jones Industrial Average trending up after the announcement.

Mortgage rates are probably set to rise with the interest rate hike looming in December, though the effects of what is shaping up to be a frenetic election makes such predictions speculative at best.

Continue Your Guaranteed Rate Education 

Conforming Versus Jumbo Mortgage Loans 

Five Home Renovation Projects  that Pay Off 

Loan Programs that Fit Your Life 


Your mortgage. Your way.

Get started on your Digital Mortgage!
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Guaranteed Rate, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.

Error

Error finding/creating content for articleFeatured

Add new content