Well, here we are again. The Fed again increased policy rates by 0.25% at their most recent May 2023 meeting, as the markets expected. What they said next is more interesting.

Will the rate hikes stop here?
After 10 consecutive increases, the Fed softened its stance regarding the probability of future increases but did not go so far as saying this would be the last. Though investors had hoped to hear a pause in the series of hikes was coming, Fed Chair Jerome Powell said ongoing economic conditions will influence future adjustments. 

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.

Should the Fed's news change your home financing plans?

If this is your time to purchase a new home or access cash from equity, don't let rates stop you.

Let's find a way to work within the framework of the current environment. Options like fixed rate buydowns, hybrid ARMs, and HELOCS can help.

Background on the Fed:

• 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.

• The Fed has a standing goal to maintain inflation within a 2% range. By making borrowing more expensive, they slow spending and inflation.

• The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.

• This is the 10th increase since March 2022.

Bottom Line

Don't let interest rates hold you back from making a move or accessing cash. We are still closing loans ever day and are here to help!