Market Update: Rates Rise; Fed Interest Rate Decision, Housing Starts and Building Permits Coming Up This Week |
The US bond market reacted to an announcement from the ECB last week, which pushed mortgage rates higher. The consumer price index showed that inflation is still climbing higher, which also caused a market reaction. To prepare for the upcoming Fed rate increases, the market mortgage rates are continuing to trend upward. The Federal Open Market Committee (FOMC) sets the federal funds rate. The federal funds rates will influence mortgage rates. When the Fed raises rates, mortgage rates typically go down. The rate will be set. The Fed is not set them exactly. The rates will be in place, but the rate will influence the rate, but it will not be set exactly. If you want to take advantage of rates, let us know.