Fed Hikes What does it mean to you?

Fed Hikes What does it mean to you?

Update to this blog page 

2/02/23

No fewer than a dozen times did the Fed Chairman Jerome Powell say the word "disinflation" at his latest press conference.  This may be a good sign for rates and the economy.  For more information:

Yahoo Finance Disinflation comment by Fed Chair

7:11 am Mortgage Bonds are currently improving and the 10 year is flat at 3.396%.

2/01/23

1:05 PM : The Fed has increased the Fed Funds rate by the expected 25 basis points to a target range of 4.50-4.75%. The statement included hawkish language noting that the FOMC still sees the need for 'ongoing increases in the target range.' Translation they are going to continue raising rates  for awhile. 
2:14 PM: Mortgage Bonds are continuing to improve and the 10 year treasury is down 13 basis points to 3.406%.  On 10/21/22 mortgage bonds peaked during the day at a yield of 4.335% a drop of  0.93%.
3:10 PM : Stocks have ended the day higher. The Dow closed +6.92 at 34,092.96 and the S&P 500 closed +42.61 at 4,119.21. Mortgage Bonds are +31bp at 101.81
4:10 PM : Stocks have ended the day higher. The Dow closed +6.92 at 34,092.96 and the S&P 500 closed +42.61 at 4,119.21. Mortgage Bonds are +31bp at 101.81.
This is an interesting article about What Rate Hikes mean for the consumer: CNBC Article 1/31/23 Fed Rate Hike

 The Fed is likely to bump rates up by a 0.25 today.  This means the consumer will have higher: 

 

  1. Credit Card Rates
  2. Auto loans
  3. Savings Accounts
  4. Student Loans (unless they have already locked in their rate)

 Mortgage Rates should continue to go down, since the Fed Rate Hikes are slowing down the economy

 Let me know if you have any questions or if I can help in any way by replying to this email or calling my cell phone 205-266-5669.

 

Thanks!

 

John

 

John Marbury

Mortgage Banker

Residential Lending

Cell 205-266-5669 

2100 Southbridge Parkway, Suite 650

Birmingham AL 35209

john.marbury@colonybank.com

JohnMarbury.com

NMLS# 740833

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