Why Friday Matters More To Your Rate Than The Next Fed Meeting

The Fed has not moved its rate all year, and mortgage rates went up anyway. In this episode I explain who actually sets your mortgage rate, why the bond market matters more than the next Fed meeting, and what this Friday could change.

The 30-year Treasury just hit its highest level since 2007. The 10-year, which is what a 30-year mortgage actually tracks, has climbed from about 4.2% in January to 4.66% today, while the Fed funds target has sat unchanged at 3.50% to 3.75% the whole time. That gap is the whole story, and it is why waiting for a Fed cut has not lowered anyone's payment.

On Friday, August 28, the Fed Chair gives his first Jackson Hole keynote, three weeks before the September meeting. Markets are currently pricing roughly one-in-three odds of a rate increase in September, not a cut.

What I cover:

• Why the federal funds rate and your 30-year mortgage are two different things
• What the global bond selloff has to do with your payment
• Why Friday is a wider-than-usual day for rates
• Four things you can do now instead of waiting

Text MOM to 844-935-3634

Mortgage Mom Radio is live every Wednesday at 3PM PT. www.mortgagemomradio.com questions@mortgagemomradio.com (844) 935-3634

Debbie Marcoux, NMLS #237926. JMJ Financial dba Mortgage Mom Radio, NMLS #167867. Equal Housing Lender. Licensed in AZ, CA, CO, FL, GA, HI, ID, IL, NV, NC, OR, TN, TX, WA. For illustrative and educational purposes only. Not a commitment to lend. Rates, terms, and eligibility subject to underwriting approval and change without notice.

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