Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE.” This week, we answer the question:
How will the Federal Reserve’s interest rate increase affect mortgage rates and home prices?
Two weeks ago, the Federal Reserve announced their 75 basis-point increase to interest rates. How has this affected mortgage rates and home prices? Contrary to popular belief, mortgage rates did not skyrocket! In fact, the CPI (Consumer Price Index) number, which is a good indicator of inflation, came in lower and better than expected!
What this means is that the Federal Reserve’s intent to curb inflation is actually working, and the housing market is not suffering as a result. Rates may not be as low as they were the past few years, but they’re still at near-historic lows. With the rise of inventory and more houses to choose from, it’s still a great time to buy a home and start building equity!
Everyone’s situation differs depending on your individual qualifications and mortgage needs, as well as loan program, so contact us or book your loan consultation today to get started on your homebuying journey with our team of mortgage experts you can trust.