Remarkable Absence of Mortgage Rate Volatility
It happens, but it's rare. A Fed "dot plot" day has come and gone with mortgage rates almost perfectly unchanged from the previous day. This speaks to the level of indecision not only in the market, but also among Fed members. First off, what's a "dot plot day?" The dot plot (or simply, "the dots") refers to a chart/table in the Fed's economic projections that shows where each Fed member sees the Fed Funds Rate at the end of the next few years. These projections only come out on 4 of the 8 Fed days per year and they've grown to be a leading source of volatility for financial markets on those days. Since it was already a foregone conclusion that the Fed would not be cutting rates today, the market was forced to take its Fed-related cues from the dots and from Fed Chair Powell's press conference. The latter was just slightly negative for rates (i.e. it implied some upward pressure), but the dots did no harm. After the dust settled, the underlying bond market was flat to slightly stronger on the day due to improvement that was in place several hours before the Fed announcement. Markets are closed tomorrow for the Juneteenth holiday, but will reopen on Friday.
Categories
Recent Posts

Lowest Mortgage Rates in Nearly 4 Weeks

Mortgage rates dip slightly for the first time in six weeks

Florida draws movers across generations

FinCEN finalizes reporting exemption for U.S. businesses

Mortgage Rates Back at 3 Week Lows

Florida continues to attract newcomers

Park, record, post: Make downtime work

Inflation cools, giving housing market some breathing room

Mortgage Rates Sideways to Slightly Higher

Communication logs can help protect agents in disputes
GET MORE INFORMATION

Beverly Amerman
Broker Associate | License ID: BK3235075
