I had a great conversation with a friend recently regarding the concern over fed rate hikes. I had to tell him that mortgage rates actually peaked at the end of October. He seemed surprised given the Fed came out and increased interest rates again just last week. I figured it might be time to discuss how there might not be a direct correlation between the Fed Rate Hikes and Mortgage Rates.
Oftentimes the Fed's rate hikes affect shorter term loans including credit cards and auto loans. This is why mortgage rates can have peaked at the end of November, yet the Fed has continued to increase rates. With that, even if the Fed comes out indicating that we have several more rate hikes in store, it may not impede upon the ability to purchase a home or secure more buyers.
For more information on current mortgage rates today, check out the link below:
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