The Federal Reserve paused rate hikes at its latest meeting, citing cooling inflation and tight credit markets. Austin Klar reports that Jerome Powell's comments sent Treasury yields down, dropping mortgage rates from above 8% to just over 7.5%.
Everyone paying attention to interest rates and the housing market can take a big sigh of relief this week because the Federal Reserve opted not to hike short-term borrowing rates after its meeting. Shocker, turns out borrowing money is really expensive right now. Financial and credit markets are very, very tight. And with inflation continuing to cool and fall in the right direction, the Federal Reserve agreed it best not to raise rates again, at least for now. In response to the decision and in response to commentary made by Chairman Jerome Powell after the meeting, Treasury yields, which are a huge influence on mortgage rates, fell. And in response, we got a huge drop in mortgage rates too. Just a few weeks ago, we were hovering at over 8%, and now we're back down to a little over 7.5%. Still high, obviously, but anything is helpful in this housing market. Follow me for more updates about interest rates and reach out if you want more information.
