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TODAY’S RATES & HOUSING NEWS

Mortgage Interest Rates improved slightly
with the Mortgage Backed Security (MBS)
market trading up +27 bps. The 10 Year
Treasury currently sits at 4.5647%.

On Monday, interest rates received a
boost when many AI Technology
Company Stocks sold off after DeepSeek,
a Chinese AI startup company, released
a reasoning model that some believe
outperforms Open AI’s latest models.

DeepSeek has claimed that it is making
this technology in a shorter period of
time and at a much lower cost than
their competition. Their technology can
also be used with less expensive chips.

This is sparking concern that many
American companies are not leading the
way on AI Technology development like
originally thought.

When the stock market is going down, many
investor dollars move towards the safety of
bonds which help mortgage interest rates.

This is an important week for Interest Rates.

The FED is meeting this week with a
statement on Wednesday. The market is
not expecting the FED to move the Federal
Funds Rate, but their commentary on the
future movements can cause major shifts
in the market.

On Friday, the PCE Inflation Report could
also be a market mover for interest rates.

Below are Mortgage News Daily’s
average interest rates across the
country. There are a lot of characteristics
that go into a mortgage rate – credit
score, investor, loan to value, loan
amount, costs, etc.

Please call me to go over your specific
scenario so we can price your loan
out accurately.

OR reply to this email with the answers
to the questions below for Mortgage
Options for your scenario.

REFINANCE QUOTE:

Goal of Refinance – Lower Payment, Cash Out, Etc:
Address of Home:
Estimated Value Of Home:
Current Loan Amount:
Loan Amount You Would Like to Finance:
Current Rate:
Do you know what type of Loan you are Currently in – FHA, VA, etc:
Estimated Credit Score:
Are You a Veteran or Active Member of the US Military: 
If you are a Veteran, do you get VA Disability:

HOME PURCHASE QUOTE:

What City and State Are You Looking to Buy In: 
Estimated Purchase Price:
Loan Amount You Would Like to Finance:
Will Property be a Primary Residence, Investment Property, or Vacation Home:
Estimated Credit Score:
Are You a Veteran or Active Member of the US Military: 
If you are a Veteran, do you get VA Disability:

Thank you!

CAN THE PRESIDENT FORCE
THE FED TO LOWER
INTEREST RATES?

President Donald Trump has made headlines
by stating his intention to “force” the Federal
Reserve (Fed) to lower interest rates.

“I’ll demand that interest rates drop
immediately,” he told the World Economic
Forum in Davos, Switzerland. “Likewise,
they should be dropping all over the world.
Interest rates should follow us all over.”

“When the oil comes down, it’ll bring
down prices, he said. “Then you won’t
have inflation, and then the interest
rates will come down.” When asked
what he would do if the FED did not
lower rates, Trump stated he would
“put in a strong statement.”

“I think I know interest rates much better
than they do,” he said. “And I think I
know certainly much better than the
one who’s primarily in charge of
making that decision.” “I’m guided by
them very much, ” he added. “But if I
disagree, I will let it be known.”

Does the President have the power
to force the FED to lower rates?

The Fed’s Independence
The answer is no, the President cannot
directly force the Federal Reserve to
lower interest rates.

The Federal Reserve is designed to
be an independent body, meaning
its decisions, including interest rate
changes, are made based on economic
conditions rather than political
pressures. This independence is a
core principle of the central banking
system in the United States, ensuring
that monetary policy decisions are made
objectively, based on economic data,
rather than political motivations.

Legal Framework
The Federal Reserve was created by
Congress in 1913 and is structured to
operate independently from the executive
branch. While the President nominates
the Board of Governors, including the
Fed Chairman, once appointed, these
officials serve fixed terms, with the
Chairman serving a four-year term.
Even if a President disagrees with the
Fed’s policy direction, they cannot remove
or replace the Chairman without just cause,
which is highly unlikely in practice.

The Fed’s Role
The Federal Reserve sets interest rates
to manage inflation, support employment,
and stabilize the economy. These decisions
are made by the Federal Open Market
Committee (FOMC), which meets
regularly to assess economic conditions
and make adjustments as necessary.
The goal is to balance growth with price
stability, which sometimes requires
raising rates to cool down an overheating
economy or lowering them to stimulate
growth during a recession.

Can the President Influence the Fed?
While the President can’t directly control
the Fed’s decisions, they do have influence
in indirect ways. For example, Presidents
can make public statements that might
affect market expectations or appoint
Federal Reserve officials who share
their economic outlook. However, any
pressure to alter the Fed’s course could
undermine the central bank’s credibility,
potentially leading to unintended
economic consequences.

While the President may publicly advocate
for lower interest rates, they cannot
directly force the Federal Reserve to
act. The Fed’s independence is a
cornerstone of U.S. monetary policy,
designed to ensure decisions are made
based on long-term economic health, not
short-term political gain.