First Team’s Weekly Mortgage Watch (September 23rd, 2018) This Week Highlights The Following Updates:
- Mortgage rates were pressed upward last week as a number of macroeconomic factors pressed on the market.
- Rates were already moving upward in expectation of the Federal Reserve bumping the Fed Funds rate upward this week.
- The major tax bill may have goosed some additional economic growth, but as expected, the Federal government needs to borrow more money to cover its own bills.
- This means a bigger supply of treasuries coming into the market, competing for investment. This tends to drive all interest rates higher.
- While all of these factors can seem overwhelming at times, especially as housing prices move up and affordability gets crimped, rates remain at historically low levels.
- This week will have all eyes focused on the Fed. A rate increase is almost certain and completely baked into current mortgage rates. What is less known is what the Fed will say after the meeting and the contents of the policy announcement.
- The more it appears that the Fed is ready to adjust rates higher, the more likely we are to see mortgage rates continue a slow, steady march higher.
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With the exception of a few states, credit bureaus routinely charged consumers when they needed to freeze or unfreeze. For real and potential victims of identity fraud and cyber theft, the charges were extremely frustrating. All of that has now changed. A new law requires that the bureaus provide credit freezes and unfreezes for all US citizens at no charge. No central location exists to request services from Experian, Equifax, and TransUnion, so they each must be contacted.