The Fed is giving homeowners no hope
Boston Condos for Sale and Apartments for Rent
The Fed is giving homeowners no hope
Will mortgage rates get beaten up again this week if/when the Fed hikes their rate?
Let’s check the history.
Over the last ten Fed hikes, the 30-year mortgage rate actually fell four separate times — on the same day, or same week, that the Fed was raising rates:
Ten meetings. Four declines.
Why this happens
Your mortgage rate doesn’t take orders from the Fed funds rate. It takes its cues from the 10-year Treasury yield, and the 10-year is a forward-looking instrument — it’s already pricing in where the market thinks rates are headed, months in advance.
So when the Fed actually hikes on schedule, that’s old news to the bond market. What moves mortgage rates on Fed day isn’t the hike itself — it’s what Powell says in the press conference afterward about what’s coming next.
- July 2022 — the Fed hiked 0.75%, but Powell hinted the pace might slow from here. Bond market breathed a sigh of relief, mortgage rates dropped.
- December 2022 — after four straight jumbo hikes, the Fed stepped down to 0.50%. That deceleration itself was the signal, and mortgage rates fell on it.
- February 2023 — a modest 0.25% hike, read as the Fed nearing the finish line. Rates eased.
- May 2023 — another 0.25%, another “we might be close to done” tone. Rates barely budged, then slipped.
Compare that to November 2022, when the Fed hiked as expected but Powell signaled the endpoint was higher than the market had priced — and mortgage rates spiked to the cycle peak of 7.08% that same week, even though the hike size was identical to the one in September.
If the Fed raises their rate, I think mortgage rates will fall this week too. They already packed in a 1/4% over the last 7-10 days in anticipation!
The Fed is giving homeowners no hope
The Fed is giving homeowners no hope
The recent job report was stronger than expected, thus, don’t expect any Fed cuts in the near future. Sorry, Boston condo for sale buyers.
Updated: Boston Real Estate Blog 2026
Peace be with you
The Fed is giving homeowners no hope
Pres. Trump is urging Powell to lower rates, and the Fed chief is going to cave.
Powell will lower the rates. Says Pres. Trump. “I guarantee it.”
He’s going to lower his Fed rate by 1/4%, and say, “There you go Pres. Trump!”
This is the Boston condo for sale market in 2026; There’s no help coming.
Ford Realty Inc., Boston Real Estate for Sale
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The Fed is giving homeowners no hope
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The Fed is giving homeowners no hope
National Association of REALTORS® Chief Economist Lawrence Yun condemned the Federal Reserve’s most-recent vote to raise its benchmark interest rate, calling the move “unnecessary and harmful.”
The inflationary pressures the Fed has been fighting — it’s raised rates 10 times over the last year — are finally starting to ease, with consumer-price inflation having fallen to 5% in the most-recent reading from 9% last summer, Yun noted.
“It will be even lower as the heavyweight component to inflation, which is housing rent, will inevitably slow down given the 40-year high robust construction of new empty apartment units,” Yun said in a press release, adding that additional monetary-policy tightening is already occurring.
“The fast rate hikes by the Fed have upended the balance sheets of many small regional banks,” Yun said. “They are becoming zombie-like banks, unable to lend even to good businesses as they are more concerned with balance-sheet shuffling for survival. This situation will worsen with each additional rate hike by the Federal Reserve.”
Only an end to the rate increases or perhaps even a rate cut later this year will give small banks the room they need to survive against their larger competitors, Yun said.
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Mortgage applications down 20% from this time last year, and refinance is down 80% from a year ago. More Fed hikes expected through 2022.
