Fed Powell's purple tie leaves mortgage rates with a black eye 🥊🤕📈

Flash Market Update

In Powell’s final FOMC meeting as Fed Chair, the committee decided to leave their benchmark “Fed Funds” unchanged at 3.50 - 3.75% for the third consecutive time.

Despite the expected news, markets responded negatively, most notably mortgage bonds.

However, mortgage rates do not follow Fed Funds and technically do not rise or fall.

Instead, the menu of options remains constant while the individual price of each rate changes daily based on the price of mortgage-backed securities.

LOWER bond prices = HIGHER mortgage rate prices.

The LendZen Index averages the daily change in price of ALL mortgage rates across a spectrum of MBS coupons and lender rate sheets.

Meanwhile, the most widely referenced rate indexes use unverifiable data and exclude fees (points).

For greater accuracy and transparency, the 30-Year fixed rate chart shown here uses public sources only, including an implied market rate based on the price of mortgage bonds.

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LendZen provides a fully automated mortgage shopping experience that gives you anonymous access to all mortgage rates with full transparency of costs upfront as bond prices change.

You can also request an official Loan Estimate for the exact loan you created and save your scenario to revisit your rate options daily with one-click.

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