The Federal Reserve Board left policy rates unchanged at their most recent meeting, as expected. Mortgage rates may not remain steady, though.
Mortgage rates have a mind of their own.
Mortgage rates are based on the demand for mortgage backed securities (MBS). Investors are more interested in what the Fed may do next than what they just did.
The Fed gave us some hints: Probably more hikes to come.
In a statement issued after their meeting, the Fed reiterated their goal of keeping inflation at 2% and affirmed that future actions will depend on economic indicators. However, the majority of Board members predicted higher rates by the end of the year.
Since MBS investors are considering possible future Fed action, as well as other market forces, it's possible mortgage rates will change even though Fed rates did not.
Where does this 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:
Don't let interest rates hold you back from making a move or accessing cash. We're still closing loans every day!