Are Interest Rates Going Up Today?

Filed under: Market Comentary

Today is the 2nd day of the Fed meeting, and many people have been waiting to see if there will be a change in the interest rates. It is anticipated that the Fed will raise interest rates by .25%, but there is nothing to worry about regarding your mortgage.

When these changes happen, it is common for customers to call me because they are worried about changes in their mortgage rates. Often, people want to lock in their interest rate before the announcement. So, I thought that it would be helpful to use this Wednesday morning video to reassure you that there is nothing to worry about.

After recording the video, the information was released that the Fed did in fact increase rates by .25%. This meeting is the 5th or 6th times that rates have gone up in the past few years. It isn’t a surprise to industry experts because the rate increases are downstream of the Quantitative Easing that has been happening since 2009.

What Does a Higher Fed Rate Mean for You?

Is there anything that you need to worry about as a result of the higher rates? For most people, there will be no change to their mortgage. The Fed increases do not have a direct correlation to the long-term mortgage rates or fixed interest loans.

But, people who are carrying balances on home equity lines of credit might see some changes. These loans are usually set up with a variable interest rate that will move up or down when the Fed makes changes. If you have a home equity line of credit, then it might be a good time for you to refinance into a 30-year fixed mortgage or something else with a fixed interest rate.

Rest assured that these changes in the Fed aren’t likely to affect mortgage rates. So, there is nothing that you need to be concerned about.

We are Here to Support Your Mortgage

If you have questions about your loan, then you can talk to our team anytime. We always stay ahead of the industry trends! Call us at Franklin Loan Center to learn more about the ways that we can help!

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