I have been getting lots of questions about the Fed raising their rate, and how that affects mortgage rates.
The Fed rate, and mortgage rates that are available to you, do not have a direct correlation. Yes, sometimes when the Fed increases rates, mortgage rates also go up. And vice versa.
I have had clients reach out to me and say 'our realtor says the Fed is going to raise rates 3 more times this year, and we better lock in a rate.' Their realtor needs to chat with someone that understands the way mortgage rates work; I would be happy to help.
I honestly think we are going to go into a mild recession. That generally helps mortgage rates. But..not always.
Here is the mortgage market movement when we found that the Fed was going to raise the rate today. As you can, as soon as the info came out, mortgage rates got worse..did a little roller coaster, and are now better on the day.
The Fed decision today DID have an affect on the stock market, almost down 400 points.
Let me know if you have any questions, or if I can help in any other way!