Bond Market & Yields - The 10-year yield remains stagnant at 446%, mirroring levels from November, indicating a lack of movement in borrowing costs [1] - Despite positive economic data, bond yields experienced an initial rise followed by a slight decrease, influenced by technical factors [4] - Key psychological levels for yields are identified: just under 2% for 2-year, 450% for 10-year, and 500% for 30-year maturities [5] Economic Data & Fed Policy - Retail sales show a healthy rebound, and initial jobless claims hit a three-month low at 221000 [2][3] - Market expectations for Fed funds imply less easing, shifting from over two quarter-point cuts to 170% [3] - Strong economic data initially pushed yields higher, aligning with typical market behavior [4] Dollar Index - The dollar index is nearing a one-month high, approaching the significant psychological level of 100 [7] - Increased interest rates and a decent labor market contribute to the strengthening of the dollar index [6]

Wall Street's always looking for signals. Signals from all over the place, but especially from the Federal Reserve, which is why I keep coming back to this subject. I just explained what happens when the Fed signals that it's willing to strangle the life out of the economy in order to curb inflation.Investors figure that we're headed into a slowdown. The stock market plummets and it tends to stay down. Now, let's talk about the other side of the coin.Because while the Fed can be the ultimate destroyer of va ...

After two consecutive weeks of increases, mortgage rates have finally decreased this week. The 30-year fixed rate is now two basis points lower than this time last year — but will they continue to trend downward? These small declines may leave you wondering: Is it a good time to buy a house? Learn how a government shutdown impacts mortgage rates. In this article: Are mortgage rates dropping? As of Oct. 9, Freddie Mac reported that the average 30-year fixed-rate mortgage rate had fallen by four basis poi ...

Core Viewpoint - Recent indicators suggest that economic activity is expanding at a solid pace, with a stable low unemployment rate and elevated inflation levels [1][2]. Monetary Policy Decisions - The Federal Open Market Committee (FOMC) decided to maintain the federal funds rate target range at 4-1/4 to 4-1/2 percent, with a commitment to support maximum employment and return inflation to a 2 percent objective [3][8]. - The FOMC will slow the pace of decline in its securities holdings, reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion starting in April, while maintaining a cap of $35 billion on agency debt and mortgage-backed securities [3][8]. - The interest rate paid on reserve balances will remain at 4.4 percent, effective March 20, 2025 [8]. Economic Monitoring - The FOMC will continue to assess incoming data and the evolving economic outlook, being prepared to adjust monetary policy if risks emerge that could impede the attainment of its goals [4][5]. - The assessments will consider a wide range of information, including labor market conditions, inflation pressures, and international developments [5]. Voting and Consensus - The monetary policy action was supported by all voting members except Christopher J. Waller, who preferred to maintain the current pace of decline in securities holdings [6].

Many factors influence the interest rate you get on a mortgage loan, including your credit history, income, the amount you borrow, and the size of your down payment. Average loan rates across the country also play a role — and those tend to rise and fall with inflation. Even the most well-qualified borrowers could receive a higher interest rate during periods of high inflation. To be clear: Inflation doesn’t directly impact mortgage interest rates, but the two are related. Understanding how inflation affe ...

Overview of the Federal Open Market Committee (FOMC) - The FOMC is a crucial part of the Federal Reserve System, which is the central bank of the United States [2] - The committee is responsible for setting monetary policy to ensure economic stability, including maximum employment and stable prices [3] Monetary Policy Tools - The FOMC controls open market operations (OMOs), which involve the buying and selling of government securities to regulate the money supply [4] - The federal funds rate, influenced by the FOMC, is a key interest rate that affects borrowing costs and overall economic activity [5][6] FOMC Membership and Meetings - The FOMC consists of 12 members, including seven members from the Board of Governors and the president of the Federal Reserve Bank of New York, along with four rotating Reserve Bank presidents [7][8] - The committee meets eight times a year to discuss economic conditions and decide on monetary policy actions [13] Impact on the Economy - Changes in the federal funds rate directly affect interest rates on loans and credit cards, influencing borrowing costs for consumers and businesses [10] - The FOMC's decisions also impact inflation management, job stability, stock market performance, and home prices [11][12]

Many factors impact the cost of owning a home, such as your mortgage principal, property tax bill, homeowners insurance premium, and — this is a big one — your mortgage interest rate. When you understand how your mortgage rate is determined, you can better prepare yourself to buy or refinance a home. Learn more: How mortgage interest works In this article: What is a mortgage interest rate, and why does it matter? Your mortgage interest rate is the price your mortgage lender charges to issue your home l ...

Maybe you only think about the Federal Reserve when interest rate decisions make headlines. However, the Fed does much more than that. The Federal Reserve acts as a bank to banks. It holds bank deposits, lends money to financial institutions, and facilitates the process for banks to borrow funds from each other. The Federal Reserve also ensures the smooth operation of the banking system and guides the nation's economy by managing U.S. currency and by steering interest rates. Learn more: How Fed rate mo ...