March 20, 2025

Fed Announcement Shifts Markets—What It Means for Homebuyers

The Federal Reserve’s latest announcement gave both stocks and bonds a boost, breaking the recent trend where stock losses helped support bonds. While economic data didn’t drive much movement, stocks surged at the open, and bonds pulled back slightly from their rally.

A key takeaway from the Fed’s update was its decision to slow the pace of reducing its balance sheet. In simple terms, this means the Fed will be buying more bonds in the short term, which can help keep mortgage rates steadier. While this isn’t a signal that lower rates are coming soon, it’s a positive shift for now.

Meanwhile, jobless claims have reached their highest level in five years (outside of pandemic-related periods), which could influence future Fed decisions. If economic uncertainty grows, we may see more favorable mortgage rate trends ahead.

If you're thinking about buying or refinancing, now is a great time to explore your options. Let’s chat about how these market shifts could impact your home loan!

📩 Contact me today to get started!

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