What is Happening with Interest Rates?

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Filed under: Market Comentary

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Today was another day that people in the finance industry anticipate: another Fed meeting. The announcement is that rates went up by .25% today, but that doesn’t mean your mortgage rate is up .25%. This has been a common trend and is the 8th or 9th time that they’ve chosen a quarter-point increase since they started increasing a few years ago.

Every time a Fed meeting happens, they have a two-day meeting. Then, they make an announcement about what they are going to do with the Fed funds rate. It always ends on Wednesday, so it is a natural topic of discussion for my weekly videos.

Don’t Worry about the Headlines

People are often concerned when they see headlines indicating that the Fed is going to raise interest rates. But, it is essential to always keep in mind that it is not a direct correlation to mortgage interest rates. It can have an indirect effect or a strong effect, but it’s hard to tell exactly what will happen in the mortgage industry.

What is Happening with Mortgage Rates Right Now?

So, what are the current trends with mortgage rates? There’s no doubt that mortgage interest rates are in an upward trend. The industry has been going in that direction for quite a while now. There doesn’t seem to be an anticipated reprieve on that trend. Most predictions suggest that rates will continue to rise.

In most situations when I’m talking to customers these days, I suggest that they lock the interest rate on their mortgage as quickly as possible. Locking in the price reduces the chances of landing a higher rate if you delay the process.

Don’t have a heart attack over the Fed funds increase. It doesn’t mean that your interest rate is going up by a quarter point! There isn’t a correlation between your mortgage rates and the Fed’s decisions.

You can reach out any time if you have questions about your mortgage or if you need help with financing a real estate purchase. Call me for more information.

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