Tag Archives: mortgage rates

The Federal Reserve made a surprise 0.750% rate cut this morning. Mortgage rates are falling in response, but not because of what the Fed did as much as what the Fed implied by doing it. The chart above dated from last week and illustrates what traders thought the Fed would do to the Fed Funds Rate at its 2-day meeting January 29-30. Note that over a two-month span, the market expectation changed.  The blue line (4.250%) represents the Fed Funds … Continue reading →