Mortgage rates were up slightly this week, but remain at levels last seen in September. The 30 Year Fixed Rate Mortgage was at 6.12% and the 15 Year Fixed Rate Mortgage was at 5.25% in Freddie Mac’s Weekly Survey released today. See survey below with its most recent assessment of the mortgage rate landscape.
(dynamic charts with current data)
Last week the Fed raised the Fed Funds Rate by 0.25% and said it will continue tapering its balance sheet as a major part of its quantitative tightening (QT) plan. The plan is to reduce US Treasury securities held by the Fed by $60 billion per month and mortgages held by the Fed by $35 billion per month. In 2022 they did not stick to the stated Fed tapering plan and have started off 2023 not even close to the targeted mortgage security reductions in the plan. The plan had the balance sheet below $8.4 trillion at the end of 2022 and below $7.3 trillion at the end of 2023. Six weeks into the new year the balance sheet still sits above $8.4 trillion. The past week saw no reduction in the balance sheet. Most significantly mortgages are still not coming off the balance sheet according to plan; yet there was no adjustment to the plan.
(dynamic charts with current data)
