Mortgage Rates Head Back Over 7% After Powell Testimony

Jerome Powell is the Chair of the Federal Reserve--the entity that sets overnight lending rates in an attempt to keep inflation in a low, stable range. Inflation has been anything but low and stable recently, so the Fed has hiked overnight rates at the fastest pace in 40 years. Mortgage rates have also risen at the fastest pace in 40 years, but they are not directly dictated by the Fed. Rather, the Fed's direct influence on overnight rates spills over to the rest of the rate market. The longer the duration of any given borrowing term, the less connected the interest rate may be to the Fed Funds Rate. Moreover, the market adjusts expectations for the Fed Funds Rate constantly whereas the Fed only officially hikes/cuts 8 times a year. When the Fed meets again in 2 weeks, they will certainly be hiking rates again. The only question is "by how much?" Markets had been steadfast in their expectations for a 0.25% hike, which is viewed as the minimum increment for a rate change from the Fed. With some recent data indicating plenty of economic resilience and persistent inflationary pressures, calls have increased for a 0.50% hike. In a scheduled testimony before the Senate Banking Committee today, Fed Chair Powell stopped short of specifying a number for the next rate hike, but commented qualitatively on the need to hike faster/more than previously expected. Markets consequently upped the odds for a bigger hike in 2 weeks as well as a higher ceiling expected by the end of 2023.

March 7, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Head Back Over 7% After Powell Testimony Jerome Powell is the Chair of the Federal Reserve--the entity that sets overnight lending rates in an attempt to keep inflation in a low, stable range. Inflation has been anything but low and stable recently, so the Fed has hiked overnight rate... (read more) MBS Commentary Rate Hike Expectations Ramp Up Post Powell Rate Hike Expectations Ramp Up Post Powell Even though Fed Chair Powell didn't say anything remarkably new or different, markets read enough into his delivery to change the course of Fed Funds Rate expectatio... (read more) Rob Chrisman Cybersecurity, Data Mining, Credit Supplement Products; CMG and Homebridge Make Retail Deal While the musical world mourns the loss of Gary Rossington, the last original Lynyrd Skynyrd band member, and I head to San Diego this morning for the TMC event, but I’ve heard through channels that my cat Myrtle is thinking about copywriting her tri... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.03% +0.04% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.03% +0.04 0.00 15 Yr. Fixed 6.48% +0.03 0.00 30 Yr. FHA 6.52% +0.07 0.00 30 Yr. Jumbo 6.50% +0.05 0.00 5/1 ARM 6.57% -0.03 0.00 30 Yr. VA 6.55% +0.10 0.00 Updates Daily - Last Update: 3/7 15 Yr. Fixed Rate 6.48% +0.03% Rate Change Points Freddie Mac 30 Yr. Fixed 6.65% +0.15 0.00 15 Yr. Fixed 5.89% +0.13 0.00 Updates Weekly - Last Update: 3/2 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.71% +0.09 0.77 15 Yr. Fixed 6.13% +0.15 0.93 30 Yr. Jumbo 6.44% 0.00 0.49 Updates Weekly - Last Update: 3/1 MBS / Treasuries UMBS 30YR 5.5 99.33 -0.28 Price / Yield Change MBS UMBS 5.5 99.33 -0.28 UMBS 6.0 100.78 -0.22 GNMA 5.5 99.92 -0.36 GNMA 6.0 100.91 -0.25 Pricing as of: 3/7 5:31PM EST 10 Year US Treasury 3.9676 +0.0016 Price / Yield Change US Treasury 2 YR Treasury 5.013 +0.127 5 YR Treasury 4.313 +0.058 7 YR Treasury 4.172 +0.026 10 YR Treasury 3.968 +0.002 30 YR Treasury 3.875 -0.022 Pricing as of: 3/7 5:31PM EST Latest Video Fed Chair Jerome Powell says interest rates are 'likely to go higher' than ... Fed Chair Powell: Interest-sensitive spending like housing is most affected... Powell's bearish commentary implies a 50 bps hike in March is possible, say... CPI and the jobs report will test market's soft-landing narrative, says New... Around the Web CNBC Used vehicle prices rising at an unseasonably strong rate CNBC Fed Chair Powell says interest rates are 'likely to be higher' than previously anticipated CNBC Homes might be more affordable in 2024, but that doesn't mean you should wait to buy one Calculated Risk Blog Pandemic Economics, Housing and Monetary Policy: Part I; The Economic Fireworks have been in Housing! The Basis Point Homebuilder Health Alert: $369 lumber down 79% from $1733 peak, and now below pre-pandemic levels Eye on Housing Single-Family Market Share Continues to Shift from Large Population Centers Calculated Risk Blog CoreLogic: House Prices up 5.5% YoY in January; Declined 0.2% MoM in January NSA Calculated Risk Blog Leading Index for Commercial Real Estate Increases in February Calculated Risk Blog Black Knight Mortgage Monitor: Home Prices Declined in January, "on pace to fall below 0% by March/April" CNBC Treasury yields fall as investors anticipate Fed Chair Powells remarks Eye on Housing Remodelers Average Net Profits are Down, NAHB Study Shows The Basis Point ICE lowers purchase price of mortgage software giant Black Knight to $11.7b, will sell key unit if deal approved, may litigate with FTC for approval CNBC European markets head for mixed open as investors await Fed chair's comments

© 2023 Mortgage News Daily, LLC. | 19701 Bethel Church Rd. | Cornelius, NC 28031 Interest rates displayed are national averages and for informational purposes only. Actual rates from lenders may vary based on several factors including, but not limited to, credit worthiness, ability to replay, credit score, down payment, loan term, etc. This email was sent to: newsletter@newslettercollector.com. Go here to UNSUBSCRIBE from this email.