• Skip to main navigation
  • Skip to content
  • Skip to footer

Talk To Cathy Now!

Have a question? Give me a call at 239.821.7926, or you can click here for more options to call or email and I will contact you right away.

Marco Island Condos, Marco Island Real Estate, Marco Island Homes for Sale, Marco Island Luxury HomesMarco Island Condos, Marco Island Real Estate, Marco Island Homes for Sale, Marco Island Luxury Homes

Marco Island Real Estate

  • SEARCH
    • Join Deal Alert
    • Advanced Search
    • Newly Listed Homes
    • My Featured Properties
    • Upcoming Open Houses
    • Interactive Map Search
    • Search by Listing ID
    • Search by Address
    • My Favorites
  • CONDOS
    • Marco Island ALL Condo Directory
    • Beachfront Condos
    • Waterfront Condos
    • Golf Course Condos
    • Inland Condos
    • Gated Condos
    • Condos with a Boat Dock
    • South End Condos
    • Old Marco Condos
    • Luxury Condos
    • Water Direct Condos
  • HOMES
    • Beachfront Homes
    • Gulf Homes
    • Golf Homes
    • Inland Homes
    • Water Direct Homes
    • Water Indirect Homes
  • AREAS
  • MARKET REPORT
    • Current Market Report
    • What’s Your Home Worth?
  • GALLERY
  • RESOURCES
    • About Marco Island
    • Explore Marco Island Real Estate
    • Video Tour
    • Golf Courses
    • Attractions
    • Area Links
    • Churches
    • Dining
    • Videos
    • Mortgage Calculator
  • ABOUT
    • About Cathy
    • Client Reviews
    • “Women in Business”
    • Why List with Me?
  • BLOG
  • CONTACT
  • 239.821.7926
SearchClose

The Fed Starts A 2-Day Meeting Today. Make A Strategy.

Fed Funds Rate vs Mortgage Rates 1990-2012

The Federal Open Market Committee begins a 2-day meeting today in the nation’s capitol. It’s the group’s third of 8 scheduled meetings this year. Mortgage rates are expected to change upon the Fed’s adjournment.

Led by Chairman Ben Bernanke, the FOMC is a 12-person, Federal Reserve sub-committee. The FOMC is the group within the Fed which votes on U.S. monetary policy. “Making monetary policy” can mean a lot of things, and the action for which the FOMC is most well-known is its setting of the Fed Funds Funds.

The Fed Funds Rate is the overnight interest rate at which banks borrow money from each other. It’s one of many interest rates set by the Fed.

However, one series of interest rates not set by the Fed is mortgage rates. Instead, mortgage rates are based on the prices of mortgage-backed bonds and bonds are bought and sold on Wall Street.

There is little historical correlation between the Fed Funds Rate and the common, 30-year fixed rate mortgage rate.

As the chart at top shows, since 1990, the Fed Funds Rate and the 30-year fixed rate mortgage rate have followed different paths. Sometimes, they’ve moved in the same direction. Sometimes, they’ve moved in opposite directions. 

They’ve been separated by as much as 5.29 percent at times, and have been as near to each other as 0.52 percent.

Today, that spread is roughly 3.65 percent. It’s expected to change beginning 12:30 PM ET Wednesday. That’s when the FOMC will adjourn from its meeting and release its public statement to the markets.

The FOMC is expected to announce no change in the Fed Funds Rate, holding the benchmark rate within in its current target range of 0.000-0.250%. However, how mortgage rates in and around Naples respond will depend on the verbiage of the FOMC statement. 

In general, if the Fed acknowledges that the U.S. economy as in expansion; growing from job growth and consumer spending, mortgage rates are expected to rise. If the Fed shows concern about domestic and global economic growth, mortgage rates are expected to fall. 

Any time that mortgage markets are expected to move, a safe play is to stop shopping your rate and start locking it. Today may be one of those times.

Posted in: Blog Tagged: Fed Funds Rate, Federal Reserve, FOMC

Join Property Alert

Did you know the hottest homes for sale on Marco Island often sell within days of being listed? Don't miss out! Set up your own custom property alert so you can be notified of the newest homes as they hit the market! Simply click the button below and choose the qualities that you want most in a home and save your search to start getting alerts today!

JOIN PROPERTY ALERT

As a local Marco Island resident & Real Estate Agent I also have access to homes before they hit the market and can show you more homes and information that are only accessible in the MLS. If you would like to set up a time to go over your real estate needs, please free to contact me at your convenience. There is no obligation and or pressure... I hope to hear from you!

Post navigation

« America’s 20 Best Small Towns
New Home Sales Revised Higher In February; Slip 7% In March »

Contact Us Now



239.821.7926

Cathy.Rogers@Sothebysrealty.com

760 N. Collier Blvd., #101,
Marco Island, FL 34145

Join Deal Alert

Get New Properties & Price Update Alerts sent straight to your inbox

Favorites

Login to manage your Favorites, Save Properties & Searches

Property Search

Find Condos using the most powerful Search tool in Marco Island

FREE Home Valuation

Find out the TRUE value of your condo and what other condos in your neighborhood are selling for

AREAS I COVER

34145, Condos, Beachfront Condos, Water Direct Homes, Marco Island Inland Homes, Water Indirect Homes, Marco Island Inland Condos, Golf Course Homes, Gulf Condos, Marco Island Golf Course Condos, Beachfront Condos, Tigertail Beach, Hideaway Beach Real Estate, Key Marco, Old Marco, Cape Marco, South End, River Area

Connect with Us

© 2021 · Cathy Rogers · 239.821.7926 · Privacy Policy · Marco Island Real Estate

Disclaimer - All Rights Reserved by Cathy Rogers, Premier Sotheby's International Realty, Licensed in Florida · Marco Island Condos & Homes for sale · Sitemap · IDX Sitemap · IDX XML Sitemap

Log in · Real Estate Website by Real Estate Websites by YourSiteNeedsMe.com