Federal Reserve Governor Lisa Cook said yesterday she’s prepared to raise interest rates if inflation doesn’t cool, adding pressure for a September hike that would push mortgage costs even higher.
For the first time in decades, mortgage lenders can now choose between FICO and VantageScore 4.0 when evaluating borrowers for Fannie Mae and Freddie Mac loans, ending FICO’s monopoly but creating new operational challenges and pricing uncertainties.
The Federal Reserve kept its key rate at 3.5%-3.75% yesterday, but three policymakers broke ranks to demand a hike—the most dissent in nearly a decade. Mortgage rates remain elevated as inflation concerns linger.
Mortgage rates delivered conflicting signals to borrowers this week, with different lenders reporting opposite movements as the Federal Reserve prepares to meet on rate policy.
Markets now see a one-in-three chance the Federal Reserve will raise rates this week as oil prices surge and Chair Warsh signals unwavering commitment to controlling inflation.