Two days until the Fed decides, and your buyers are asking what it means

The Fed meets in about six weeks, and a lot of buyers think that means they should pause and see what happens. Here's the short version you can hand them: the Fed sets the rate banks charge each other overnight, not mortgage rates directly. Mortgage rates move on what the bond market thinks the Fed will do, and the bond market already priced in most of the news weeks ago.

Right now, today's average 30-year rate is 6.375%. It ticked up this week as Treasury yields edged higher, and it could move again before the meeting. For sellers, higher rates mean fewer buyers can afford their price, so inventory keeps building. For buyers, waiting for the Fed rarely pays off because rates move before the announcement, not after. If your client is ready and the numbers work, the best time to act is when they find the right house, not when the calendar says so.

If you've got a buyer who wants to know what they qualify for right now, send them my way. I'll get them a real number in 24 hours. Brett Hickman, (949) 350-8005. Informational only, not a commitment to lend, rates subject to change. NMLS 2010859. Equal Housing Opportunity.