The Fed hikes rates again!
After pausing its cycle of policy rate hikes in June, the Fed implemented another increase at its July meeting. Many rate watchers hope the 0.25% hike will be the final increase of the year.
Future Fed action depends on the economy.
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In a statement issued after their meeting, the Fed reiterated their goal of keeping inflation at 2%.
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The Board maintained its commitment to monitoring economic data to make decisions on future adjustments.
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It's simply too soon to know what will come next.
Please Note: Mortgage rates are impacted by market forces beyond Fed actions and will not necessarily change at the same pace as the Fed's moves. They often shift before the Fed acts, in anticipation of changes.
Where Does this Rate Watch News Leave You?
If you are ready to make a move, we have programs that can help mitigate high rates. Options like fixed rate buydowns, hybrid ARMs and HELOCs can help you move forward with your plans.
If you want to wait a little longer for more favorable rates, this is a good time to start preparing so you’ll be ready when the time is right for you.
Background on the Fed:
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The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.
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The Fed has a standing goal to maintain inflation within a 2% range. Over the last year, they hoped to slow spending and inflation by making borrowing more expensive.
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The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.
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The Fed raised rates for 10 straight meetings then paused their hikes in June. July’s increase is the 11th in this cycle and places the mid-range benchmark borrower cost at its highest level since 2001.
Bottom Line:
Don't let interest rates hold you back from making a move or accessing cash. We're still closing loans every day! Contact us today to learn about your home buying options.
