Fed’s Daly signals more rate hikes
The view aligns with that of Mike Fratantoni, chief economist at the Mortgage Bankers Association (MBA) in Washington, DC, who shared at the MBA’s annual convention in Chicago in October that “your typical household, their income is not keeping up with the cost of living. If you’re going to watch one macroeconomic variable, I’d recommend this one, because I think that personal saving rate captures the whole story pretty well.”
A powerful El Niño weather event could add as much as 1% to US consumer prices over the course of 2027, according to research from the Federal Reserve Bank of San Francisco. https://t.co/69yIoY9HOR
— Mortgage Professional America Magazine (@MPAMagazineUS) November 4, 2026
What the hold means for brokers
The Federal Open Market Committee (FOMC) raised its benchmark rate to a target range of 3.75%-4% at the September meeting, the first rate hike since 2023, before holding at the following gathering, citing a preference to wait for “the accumulation of more information.”
Daly, who will vote on the FOMC next year, acknowledged a volatile broader backdrop, including the “painful” but orderly repricing of technology stocks, as a reason for the Fed to remain deliberate.
“Those volatilities are something that you have to take into account, collect more information, and be deliberate but more gradual in how you get there,” she said.
For mortgage brokers navigating a compressed market, the Fed’s uncertain path extends the pressure.
