Good News from the Fed

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Filed under: Market Comentary

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Instead of recording my video in the morning like usual, I waited until after the Fed announcement today. They announced that rates are staying at zero – which is no surprise. One surprising bit of news is that they expect rates to stay at zero through 2022.

Fed Funds: No Direct Correlation to Mortgages

Everyone has heard me say a million times on my weekly videos: The Fed funds rate does not directly correlate to mortgages. But, when the Fed says they are going to keep the rate low for a very long time, that’s probably a good sign for mortgage rates staying down as well.

Based on this news, we saw a little bit of an improvement in mortgage rates today, which is always a welcome sight. Although, they are already ridiculously low.

Demand in the Market Right Now

We also saw mortgage applications up by about 15% compared to last year, with many people looking to buy homes. This is a topic that I’ve been talking about: the demand for purchases right now is super high. It seems counter-intuitive, but that’s what is happening in the market currently.

The combination of the lift on the quarantine, combined with the low interest rates, is letting everything go crazy. I think there was pent-up demand that is breaking loose, and the market is crazy.

Need Help with Your Mortgage?

Like I said last week, if you or someone you know is looking to sell a house and they are on the fence. I assure you that now is a great time. Of course, you need to make some decisions related to health considerations and other factors affecting you personally.

As far as the market itself, you are very likely to get top dollar for your house right now. And interest rates are rock-bottom when you are ready to purchase your next home. For more details, contact me anytime to learn about your options.

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