Fed Raised Rates .25%, So Mortgage Rates Went Up .25% Too, Right?

By
Mortgage and Lending with Fairway Independent Mortgage Corporation NMLS #395819, FIMC #2289

Wrong! The Fed raised rates last week by .25%, so what does that mean for mortgage rates? Very little!

But our home buyers and sellers can be scared by the headlines and think their mortgage rate and housing payment will go up because of the Fed move. There is a very loose correlation between the Fed rate and mortgage rates (see chart below), but mortgage rates did not go up by .25% after the Fed move this week.

The Fed is signalling further hikes through 2019, so here is the 30,000 overview of what Fed rate hikes mean (or don't mean) for mortgage rates, so you can have a little ammo if the conversation comes up when you are working with your clients.

Fed Rate Versus Mortgage Rate (2000-2018) - Forbes Article:

The RJ Baxter Team, Denver Mortgage Lender


We are here to serve our clients and put our clients first....we treat every client with the same care and respect.


P.S. - Referrals are the life-blood of my business. If you know anyone looking to purchase or refinance a home, please forward me their name and number. I am at my best when I'm helping others!


Licensed in CO, CA, TX, FL, IL, and IA

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RJ Baxter- Branch Manager, Educator, Speaker, Mountain Biker, Broncos Fan, Snowboard Shredder, Father of Two Crazy Kids

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Comments (2)

Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good morning 

Thank you for sharing your information with us 

Have a great day. 

Jun 24, 2018 06:56 AM
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

That is a very common misconception people have. It is always worth mentioning to perspective homebuyers. 

Jun 25, 2018 10:09 AM