At the Federal Reserve’s November meeting, chairman Jerome Powell did not close the door on future interest rate hikes, but many remain hopeful the Fed is finally done raising rates in 2023. Following the meeting, Marty Green spoke with reporters on what the Fed’s latest activity (or lack thereof) signaled for mortgage rates and the residential real estate market.
“With treasury yields rising and mortgage rates at a 20-plus year high, the Federal Reserve is like a blackjack player with two face cards—the only sensible play at this meeting was to hold pat,” Green said. “Since the last meeting, the markets have basically done the Fed’s work for them, with the rise in rates for treasuries and mortgages equating to another interest rate increase.”
Green added: “The lag effect of the Fed’s policy decision was on full display, with the economy continuing to absorb the full impact of the Fed’s decisions from earlier in the year, even with the Fed taking no additional action. It is becoming increasingly clear that the Fed is indeed done raising rates in this cycle. While the cycle has been inordinately painful to the mortgage industry, with another interest rate pause, we should be at least one step closer to some relief in 2024.”
Green’s comments were included in the following coverage:
- HousingWire: Housing experts are hopeful the Fed is done with rate hikes
- National Mortgage Professional: Federal Reserve Holds Steady On Interest Rates
- Scotsman Guide: Federal Reserve stands pat, holds anchor rate steady after November meeting
- Insurance NewsNet: Fed decides to stand pat on rates, as market does its work
- Chrisman Commentary: Borrower Retention; Polunsky Beitel Green’s Marty Green on the Fed; Time for Refinances?