As of 7/19/2023 – Markets Have Calmed

We are expected to see a 25 basis point (0.25%) increase in the Fed’s Rate next Wednesday (7/26). This increase has already been priced into the markets and WILL NOT affect Mortgage Rates. The original expectation was that there would be two more rate hikes though the markets are thinking the second hike after next weeks will NOT BE NEEDED to keep disinflation going which helps mortgage rates recover from the recent highs. As long as the Fed’s comments next weeks are consistent with this thinking then rates will continue to improve.