US Mortgage rate drops after fed announcement

US Mortgage rate drops after fed announcement

GADGETRAID.COM

GADGETRAID.COM

High Inflation in USA

USA is going through record inflation. Consumer Price Index showed prices rising faster than expected. This will hurt residents severely.

Fed raised policy rate by 75 bps

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People are worried that by increasing policy rates by 75 bps mortgage rates will also increase by 75 bps.

Will Mortgage rates rise?

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Mortgage rates and policy rates are not connected with one another. Increasing Policy rates does not guarantee increase on mortgage rates

Effect on Mortgage rates

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Experts believe that mortgage rates have already adjusted in the anticipation of what the fed was expected to do.

Chris Powell on Fed rate change

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Fed Chairman Powell said that it is not normal to have a 75 bps rate change.. According to Powell FED will have a next meeting soon for another bps rate rise.

What can be expected?

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According to the chairman, Fed might increase up to 50 bps in the next meeting. Media again. Several institutions are predicting another hike of 75 bps.

What people should expect?

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According to experts, the mortgage market is highly volatile right now. Credit is available for the lenders and there is no sign of stress as of now. But how long will this last that's a major concern.

What people should expect?

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We might witness a volatile sideways range. This market behavior will be due to small players selling in fear and big players buying as opportunity.