Rates had flat lined for the past two weeks, .25% higher than the lows from July 5th and 6th. Today the Fed concluded the July Open Market Committee Meeting with their current interest rate policy. The Fed is not increasing the Fed Funds this time and inflation remained below their 2% target, over which would likely
result in a rate increase. The Fed’s comments were optimistic and they did upgrade their outlook on the economy. The feeling is that the Fed could still hike the Fed Funds rate in December of this year, but not before. The bond market is having it’s first good day today since July
13th and I am hoping this trend will continue so we can start moving back towards the lows of July 5th and 6th. I locked as many borrowers as I could when we hit the low mark and I am now setting up new loans while I watch the market for the best time to lock. Those people in the pipeline already will have the best chance to lock in once mortgage
rates touch bottom again, which always seems to last for a day or two. This is the typical cycle when there is a new refinance frenzy. I am finally not working 14-16 hour days this week so I have capacity to help borrowers get in the queue.
Viral (Vic) Joshi
Loan Consultant/Branch Manager
C2 Financial Corporation