Fed Meeting July 26, 2017

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First Time Home Buyer HomeThey Raised:

As expected the FOMC (the Fed) left short term interest rates alone and expressed some concern over the lack of inflation which is generally good news for the bond market.  However the market reaction was muted; the 10y yield moved from a 2.31% level down to 2.30% as many investors and analyst anticipated the outcome of today’s meeting.  To start the day the 10y yield was at the 2.33% level however after the 5 year auction, and before the Fed meeting, the yield moved down to 2.31%

There was a mention about the balance sheet reduction plan and that they plan to implement that “relatively soon”.  According to statements published by Reuters; the Fed has noticed that inflation is pulling away from their 2.00% target however they claim over the “medium term” it will reach that target however in the “short term” inflation will continue to run below target (are they trying to say they’re not concerned or are they saying they are concerned???).

If there is any additional information that comes out this afternoon we will certainly keep you posted.  It appears for now the bond market is viewing today’s events in a positive light and hopefully that will continue into the next few days.

Current Mortgage Rates:

If you are looking for current mortgage rates we have you covered on our current mortgage rates page. We’ll not only keep you up-to-date with where mortgage rates are at but also cover important bond market information and general economic news that may influence mortgage rates.