After the The Federal Open Market Committee voted to leave the Fed Funds Rate unchanged this morning, mortgage rates got worse. Why? The vote was nearly unanimous (9-1 vote).
In its press release, the Federal Reserve noted that the U.S. economy has “decelerated somewhat” since January. Beyond the next few quarters, though, the Fed expects growth to “remain moderate” and then gradually pick up. Remember, when there is bad news for the economy, rates improve. And when there is good to moderate news, rates get worse (see video explanation). Read the rest of this entry »