The Big Question…Will They or Wont They?  What will the Federal Reserve do or say at the conclusion of today’s big fed meeting?  Were waiting on Pins and Needles!

 
Its been almost 2 years where the Federal Reserve has aggressively increased rates to control inflation which is finally at 2.5% from 6.5% to 7% several years ago.
The Fed Meeting which starts tomorrow, is predicted and already built into the consumer rate market, that rates will be decreased by .25.  If the Federal Reserve does more, rates will drop even further compared to where they are now.  If the Fed only drops rates by .25, rates will most likely stay flat or possibly climb, but if the Fed doesn’t lower rates, then we will see rates climb.
There is lots of talk on the street about what my occur but with inflation now at 2.5%, the Federal Reserve is now worried about going into a recession and the easiest way to prevent this, is to lower the cost of money by lowering the federal funding rate which then lowers consumer lending rates.
 
This is what we are hearing right now…
 
We will update you once we hear from Jerome Powell, the Federal Reserve Chairman.
BTW…Here is Today’s Residential Rates…

6.125% at 0 Points – 30yr Fixed Jumbo loan at $1.150M & above at 75% ltv (APR – 6.319%)
5.990% at 0 Points – 30yr Fixed Conforming loan at $766.1k > $1,149M at 75%ltv (APR – 6.184%)
5.750% at 0 Points – 30yr Fixed Conforming loan at $300k > $766k at 75% ltv (APR – 5.944%)

Rate Notes: 15 year fixed rates are approximately .75 lower in rate than the rates above, depending on loan amount, fico and if purchase or refinance.

Additional Notes: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.  Above rates are for owner occupied property on purchases assuming an 800 mid fico within the Bay Area.

BTW2...Conforming Loan Amounts may be Going Up from $766,550 to $802,650. That would be a nice increase of $36,100.  In addition, most likely the high balance conforming loan limit will be increased as well to $1,203,975 from $1,149,825.

For a customized quote or for anything financing related, please contact me.

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

650-465-8957 c  rob@101loan.com 

CA DRE #01165697  NMLS #121019

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

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