The Fed again increased rates by 0.25% at their most recent meeting, though some had anticipated a pause in rate hikes. This is the ninth time the Committee has increased rates in the last 12 months.

Here’s why they kept pushing forward.

The Fed statement released after the meeting indicated economic signals, including continuing inflation and the strong labor market, warranted the rate hike, while also expressing confidence in the U.S. banking system. The Committee signaled that some additional rate increases may be appropriate before inflation is brought to the Fed’s target range of 2.0%.

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

• This is the ninth increase since March 2022.

Bottom Line

Don't let interest rates hold you back from making a move or accessing cash. Contact us today to take the next step towards homeownership.