Posted on 06/07/2024 8:25:07 AM PDT by SeekAndFind
Mortgage rates dipped just under 7% this week after crossing above that threshold in the prior reading as rates remain stubbornly high, stifling the housing market.
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage ticked down to 6.99% this week from 7.03% last week. The average rate on a 30-year loan was 6.71% a year ago.
The average rate on the 15-year fixed mortgage also decreased to 6.29% from 6.36% last week. One year ago, the rate on the 15-year fixed note averaged 6.07%.
(Excerpt) Read more at finance.yahoo.com ...
“Interest rates should not be set by the FED. It is not their job. Interest rates should be set by the market.”
That market ended when the Fed started issuing all the funds to back loans. This is why a lot of banks don’t want to bother with personal checking/savings accounts.
Banks used to depend upon deposits as a source of funds for loans and now the Fed does all of that.
So the Fed gets to set the interest rates on the money it farts out and then loans.
“Interest rates should not be set by the FED.”
The fed does not set interest rates.
“Interest rates should be set by the market.”
The market sets interest rates.
“I’m half way through a ten-year at 2.65%.
Doesn’t look like a good time to refi.”
I am 1/10th through my 3% 30 year mortgage.
1/4 thru my 1.86% 20-year refi.
/Topper
The Fed sets the rate that it loans to other banks not mortgages.
The overnight lending rate range is set by the Fed open market committee and the Fed uses various mechanisms like the overnight reverse repurchase agreement facility to keep the actual rate within that range.
“The Fed sets the rate that it loans to other banks not mortgages.”
The fed doesn’t set any market rates. They set the rate that reserves on deposit with the Feds earn. Market rates will be higher.
Also, they buy/sell bonds in the market. Required bank reserves also can be adjusted.
“The overnight lending rate range is set by the Fed open market committee and the Fed uses various mechanisms like the overnight reverse repurchase agreement facility to keep the actual rate within that range.”
They set a TARGET range. The ONRRA applies to banks without a fed account and gives the access to safe fed interest.
The Fed rate is what the Fed charges its best customers. ie other banks.
“The Fed rate is what the Fed charges its best customers. ie other banks.”
Nope.
The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. When a depository institution has surplus balances in its reserve account, it lends to other banks in need of larger balances. In simpler terms, a bank with excess cash, which is often referred to as liquidity, will lend to another bank that needs to quickly raise liquidity. (1) The rate that the borrowing institution pays to the lending institution is determined between the two banks; the weighted average rate for all of these types of negotiations is called the effective federal funds rate.(2) The effective federal funds rate is essentially determined by the market but is influenced by the Federal Reserve through open market operations to reach the federal funds rate target.(2)
https://fred.stlouisfed.org/series/DFF
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