The Fed announced another hike.

As expected, the Fed raised policy rates by 0.25% at their February meeting. This is the smallest increase of the eight made in the last 11 months.

More "interesting" is the Fed's signal regarding future increases.

The Fed statement released after the meeting hinted that ongoing rate increases are anticipated before inflation is brought to the Fed's target of 2.0%. Investors were hoping the Fed would back off of that sentiment.

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 their changes.

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

If this is your time to purchase a 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 hybrid ARMs, buydowns 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 rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.

This is the eighth increase since March 2022.

Bottom Line:

Don't let interest rates hold you back from making a move or accessing cash. We're still closing loans every day!