Economy Talk

PSA: Warsh's first Fed meeting and what it means if you've got a mortgage

Quick one for the UK and US folks with variable or soon-to-renew mortgages. Warsh's first meeting held rates at 3.50–3.75%, but the Fed dropped all forward guidance and nine officials now expect a rise by end of 2026. The two-year Treasury yield jumped to 4.216% from 4.047% on the day.

Two-year yields are what fixed mortgage deals tend to follow. So if you're shopping for a fix, rates might creep up before any actual hike. The MPA piece in the GONOM post has the mortgage angle.

Not financial advice, I drive a bus. But that's how I read it.