{"id":710482,"date":"2026-06-18T01:05:10","date_gmt":"2026-06-18T01:05:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/710482\/"},"modified":"2026-06-18T01:05:10","modified_gmt":"2026-06-18T01:05:10","slug":"mortgage-rates-spike-in-response-to-fed","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/710482\/","title":{"rendered":"Mortgage Rates Spike in Response to Fed"},"content":{"rendered":"<p><a href=\"https:\/\/www.mortgagenewsdaily.com\/mortgage-rates\" rel=\"nofollow noopener\" target=\"_blank\">Mortgage rates<\/a> quickly erased a week of progress this afternoon following the Fed announcement and press conference. Fed announcement day historically has several components: the announcement itself, the summary of economic projections (SEP), and the press conference.\u00a0<\/p>\n<p>Within the SEP, there is the dot plot showing each Fed member&#8217;s assumptions about where the Fed Funds Rate will be in the future if the economy continues on the expected course. &#8220;The dots&#8221; only come out every other Fed meeting, but they have a habit of causing volatile market reactions. Today&#8217;s was no exception.<\/p>\n<p>The dots essentially show that the average Fed member now sees the Fed Funds rate at least 0.25% higher at the end of 2026 than they did back in March. This is responsible for the first big move in the bond market today.<\/p>\n<p>Bonds lost more ground during new Fed Chair Kevin Warsh&#8217;s press conference. The reasons for this could be debated. Some traders may have been expecting Warsh to push back against the dot plot with a more rate-friendly tone. Others may have been disheartened at the lack of any guidance about how the Fed is interpreting incoming economic data. In general, lower transparency regarding the Fed&#8217;s reaction function arguably requires traders to price in a higher risk premium.<\/p>\n<p>Because rates are based on bonds, and because bonds lost ground sharply, mortgage lenders ended up raising rates in the afternoon&#8211;some of them up to 3 times. When the dust settled, the average lender was back up to June 10th levels with top-tier 30yr fixed rates at 6.62%.<\/p>\n","protected":false},"excerpt":{"rendered":"Mortgage rates quickly erased a week of progress this afternoon following the Fed announcement and press conference. Fed&hellip;\n","protected":false},"author":2,"featured_media":710483,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":["post-710482","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/710482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=710482"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/710482\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/710483"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=710482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=710482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=710482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}