Raleigh home loan rates rose sharply this afternoon after the Federal Reserve released the minutes from their March meeting.
All Type of Raleigh mortgage rates rose…I am talking FHA, VA, USDA conventional & even the jumbo Raleigh home loan rates
Before I give you the Kevin Martini breakdown --- let me share that the Federal Open Market Committee (a.k.a. FOMC) meets 8 times a year to discuss policy & revise statements they have made that are currently in play –FYI policy that they put in play. Now 3 weeks after they have a gathering…the Federal Reserve publishes what's known as the Fed Minutes (i.e. summary of the the conversations that shaped the meeting). The Stock market…the bond pay close attention to the Fed Minutes because the Federal Reserve is the top dog and set the tone in the investing arena.
For the past several years, Fed policies have helped drive stock markets up and bond pricing down, creating the low Raleigh mortgage rate environment to which we've all grown accustomed. As a result, when investors believe the Fed is close to withdrawing said policies, Raleigh home loan rates rise.
Folks, that is what happened today – April 3, 2012. & that did not ONLY impact Raleigh mortgage rates -- mortgage rates rose in all 50 states.
The March Fed Minutes show a Federal Reserve committed to improving the U.S. economy, but clearly within a "Wait-and-See" mode. After 2 rounds of quantitative easing, Fed members are watching employment data improve, housing numbers rebound, and an increase in consumer spending.
Before launching new stimulus (i.e. QE3), the Federal Reserve seems content to ride out the current wave of economic expansion. Wall Street wasn't prepped for this 411.
Based on comments from Fed Chairman Ben Bernanke made last week, investors thought a new stimulus round was imminent; likely to follow even the slightest economic hiccup. Today, those expectations are squashed.
Based on the March Fed Minutes, the Federal Reserve is unlikely to add new market stimulus, short of the economy losing its momentum, or deflation setting in. Right now, with growth occurring steadily and consistently, and with inflation running just short of 2 percent, markets are at risk for neither.
30-year fixed rate Raleigh mortgage rates had famously dropped below 4 percent last week – TODAY, they're back above 4 percent now.
For the last 2 quarters, Raleigh mortgage rates have held within a very tight range. They've dropped as low as mid to upper 3%. One thing that's for certain, though, Raleigh mortgage rates are wound tighter than a coil.
Each time they rise, they don't rise slowly -- they rise turbo fast. It is the Kevin Martini Group opinion that Raleigh mortgage rates are unsustainable at their current, sub-4 levels.
Folks, consider this your call-to-action. It's time to start that refinance. It's time to lock that mortgage rate. It is time to stop renting.
About Kevin Martini
Kevin Martini is a trusted Raleigh lender with the Kevin Martini Group at SunTrust Mortgage. You can email Kevin at Kevin@KevinMartini.com or call at 919.274.3700.
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