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Sometimes, you may find that your house is a long way from becoming your home. Enter FDM’s full suite of products designed to assist you in realizing your dream. From a freshening or addition to full-scale ground-up construction, allow us to guide you through the complex world of renovation and construction lending... Read More

Service. Programs. Rates. These are the three key drivers to any mortgage company’s success, including Fidelity Direct Mortgage. Most mortgage companies today can offer these, so what is The FDM Difference? How does FDM make this ideology come to life, resulting in thousands of satisfied clients and partners? Put simply, it’s our people. Each team member that touches your loan, from consultation to closing and beyond, shares the same goal – To create a lifelong relationship with you, our valued clients. From our ability to execute on even the toughest of loans to our united commitment in delivering an unparalleled experience to all parties of the transaction, these are the key components to our longevity and success. Welcome to Fidelity Direct Mortgage. Welcome Home.

What Did The Fed Do?

Nov 13, 2024

On Thursday, November 7, 2024 the FOMC reduced the Federal Funds Target Rate .25%. The range is now 4.50% and 4.75%.  The Federal Funds Rate is down .75% from where it was in early September.  The FOMC cut rates, but mortgage rates went up. Why? The mortgage market expected this move by the Fed already building this rate cut into mortgage bond pricing.  The FOMC started the interest rate cuts in September, but mortgage rates have been moving in the opposite direction. The Federal Funds Rate immediately impacts short term borrowing.  For consumers Credit Card rates, automobile loans rates , Home Equity Lines of Credit Rates will move lower after the Fed moves. Mortgage rates work differently. The average mortgage rate has been over 6% for two-years. They have remained stubbornly above 6%, even with Fed rate cuts,  prompting some to say “Sixes are the new normal”. Mortgage rates are closely aligned to U.S. Government Bonds particularly the U.S 10-Year Treasury Bond. Inflation concerns remain elevated. Inflation has not abated as quickly as hoped keeping demand for longer term bonds weak. The result? Higher rates for mortgage loans even as the Fed keeps cutting. We expect this trend to continue. The Fed Futures Market has 65% chance of another rate cut. Does that mean mortgage rates will finally improve? Based on current market dynamics don’t count on it.

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