Interest rates: A 90-Day Look

We’ve talked a lot over the past couple of months about interest rates and where they’ve been and are going. We had some curve balls thrown at us with the Fed deciding not to taper its bond-buying program, plus the government shutdown. We saw the direct impact of those two events (see here and here) on interest rates.

Here’s a nice graphic from KCM that shows 90 days of mortgage data from Freddie Mac for 30-year fixed-rate mortgages.


As you can see, back in July and the first part of August, interest rates were creeping upwards. Three-quarters of the way through August, they spiked a bit, briefly went back down, but then gained momentum again.

Then the Fed made their announcement.

You can see the steep decline that occurred over the next month and into the government shutdown. The rates went from 4.57% down to 4.22%. Rates did begin rising again, but then we had another announcement from the Fed. Just like their September announcement, they stated that they would not begin tapering the bond-buying program at this time. So after the first week since then, we saw a slight decrease in rates from 4.13% on 10/24 to 4.10% on 10/31 (not shown on graphic). Will the rates continue to go down like after the first announcement?

We’ll be closely watching to see what happens.

Have a great night!

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