Blog

Jan 28 Fed meeting & Rates

As expected yesterday, the Fed left interest rates unchanged and will continue on this path until further notice. The question is, how much lower can they get when they are nearly at 0%?

The bond market reacted negatively to the news as it is seen as a positive for the economy. Bond traders are selling this afternoon and buying into the stock market which seems to be having a good day fueled by the financial stocks.

Expect mortgage rates to be slightly higher today than they were yesterday.

Today’s refinance and purchase market is a game of cat and mouse trying to achieve the lowest possible rates and refi’ers trying to justify a lower rate versus what it will cost them to refinance.

Here is my opinion: I have had many clients who have paid mortgages for years on time get denied “modifications.” If banks are willing to help out defaulted mortgages, why not help out a good mortgage. A client of mine yesterday who is a school teacher got relieved from extra carricular activities that will cost him $12,000 annually in extra pay. He called the bank for help as things will get very tight for him. JP Morgan Chase told him that he needs to go 90 days delinquent before negotiating. I think that is straight cruelty and discrimination.

Popularity: 1% [?]