09/27/2024
Another super boring post for people that want to understand this stuff. If it's not for you, just don't read.
Interest rate costs have actually gone up since the fed meeting last week because the bond market corrected from going down too much. So, again, interest rates did not drop a half percent last week. Article shows that as of yesterday, they'd on average went up 17 basis points since the fed meeting. That means on a $200k loan, for the same interest rate, the closing costs are $340 higher to the borrower. If you want to watch what affects rates and rate costs to the borrower, watch the 10 year treasury yield. The yellow dot is when the fed meeting happened, and you see its gotten higher since then, but now compare to September 1st is much better. I just got a barrage of calls on the fed meeting day because people were saying rates just dropped 1/2 percent. Nope, they did earlier in the month in anticipation for that. Actually might have dropped closer to 5/8 or 3/4 of a percent, and now it's correcting itself.
Read article snippets below. Oh and here is a link where you can see what the Treasury bond is doing. Up/Green is bad, down/red is good. But this is what drives interest rates:
https://www.cnbc.com/quotes/US10Y
