FHA loan rates had a nice day on the release of the Fed’s minutes from the March meeting.
This is a widely anticipated release that follows every meeting. The press release is typically around 500-600 words and the minutes are often 5,000-6,000. They’re ten times as long and often ten times as influential.
FHA mortgage rates rallied, but could have gone the other way just as easily.
Wall Street was looking for clues and here’s what they found: the Fed is less concerned about inflation than they’ve stated in other recent releases.
That’s big. Inflation is the enemy of mortgage rates. Low inflation leads to lower FHA loan rates.
The economy is recovering. This is the new normal. It’s not going to be hyper-growth fueled by hyper-leverage. Of note for first time home buyers, when unemployment falls, both rates and home prices will rise. If you’re looking for that once-in-a-lifetime opportunity, the window to act is closing. Rapidly.
Tags: Fed Minutes, FHA Loan Rates, fha mortgage rates, first time home buyers, FOMC, Inflation, unemployment