06/18/2026
okay friendsssss so the fed met yesterday and i gotta explain some things here
quick context for anyone who’s like “wait what’s the fed” - the federal reserve is the central bank of the US. they don’t lend money to you directly, but they control a baseline interest rate that basically every other rate in the economy gets built on top of
that rate is called the fed funds rate
it’s the rate banks charge EACH OTHER for short term overnight loans. sounds boring but it ripples out into everything- credit cards, auto loans, savings accounts, and yeah, eventually mortgages too (just not directly, more on that below)
there’s a new fed chair (kevin warsh) and yesterday was literally his first meeting ever as chair
they held the fed funds rate steady at 3.5-3.75%
now here’s the part people get confused on - that’s NOT your mortgage rate.
mortgage rates are set by investors buying mortgage bonds, and they move based on where they think the economy and inflation are headed. the fed funds rate doesn’t set that directly, but it heavily influences the vibe
so what’s the actual story here: back in march the fed was planning on 2 rate cuts this year. Buuut yesterday, 9 out of 18 officials said rates might need to go UP instead
the change of heart was prob bc inflation hit 4.2% in May, highest in over 3 years. they’re not in a cutting mood rn
stocks dipped, yields jumped, wall street basically stopped betting on cuts happening this year
so if you’ve been telling yourself “i’ll just wait for rates to drop”... that bet got a lot riskier yesterday bestie
not trying to stress anyone out, just don’t want you finding out from a headline instead of me
dm me if you want to talk through what this actually means for you 🤍
