Removing Roadblocks to Home Ownership – What if The Fed Raises Rates Today?

Filed under: Mortgage Rates

I’m continuing on the topic of removing the roadblocks that stop people from homeownership, and today I am going to tie in something that I talk about every time The Fed meets: What if the rates go up today?

Refresher on Fed Rates

The Fed meetings always work the same: it’s a two-day meeting that adjourns on Wednesday around 11 am, and they will announce what they will be doing with interest rates. It is interesting to see how much attention these meetings get in the media. As a result, my phone always rings during this time because everyone is worried about The Fed raising rates, so they want to know what to do about their mortgage.

Yes, you have the option to lock your rate if you want, but it is important to know that this Fed Fund Rate announcement does not have a direct impact on mortgage rates. It is a big economic data point, which can have an indirect impact on interest rates.

Expectations for Fed Announcement

The bottom line is that our current interest rates are still hovering below points that we never saw before the inception of Fannie Mae and Freddie Mac. Historically, we are still at record-low interest rates.

Even still, it is expected that The Fed will hold rates, and even start buying bonds and mortgage-back securities when they expire. So, we may actually start to see a bit of easing, which would be great for rates.

I still see many interest rate projections show an increase for the year. But when announcements like this are coming through, it makes me wonder if we will see interest rates flatten or even go down. Only time will tell.

Should You Buy a House?

For what it’s worth, I just bought a house, which should show you how comfortable I am with where we are at in the market right now. If you are feeling paralyzed by the things that might be holding you back from buying a home, I’m here to help you find the right solution for your family. Call me at any time!

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