Wrong! The Fed raised rates this week by .25%, so what does that mean for mortgage rates? Very little!

But our home buyers and sellers can be scared by the headlines and think their mortgage rate and housing payment will go up because of the Fed move. There is a very loose correlation between the Fed rate and mortgage rates (see chart below), but mortgage rates did not go up by .25% after the Fed move this week.

The Fed is signalling further hikes through 2019, so here is the 30,000 overview of what Fed rate hikes mean (or don't mean) for mortgage rates, so you can have a little ammo if the conversation comes up when you are working with your clients.

Fed Rate Versus Mortgage Rate (2000-2018)

Photo of RJ Baxter

RJ Baxter

NMLS# 395819

Fairway Independent Mortgage Corp
Corporate NMLS# 2289

165 S. Union Blvd, Suite 400
Lakewood, Colorado 80228


Phone: 303-670-0137

All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs, and underwriting policies are subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans are subject to underwriting approval. Some products may not be available in all states and restrictions apply.

This is a 1x1 transparent image tracking traffic