The Fed Raised Rates by 75bps
I just wanted to to put this together as of course was big news yesterday.
A lot of people are wondering how does this effect interest rates and if interest rates are going to jump as a result. The answer is, unlikely. In fact, the Federal Reserve’s move yesterday helped rates and pricing improve as the purpose of raising the Fed Rate is essentially to curb inflation, which in turn should help the bond market. Keep in mind, that inflation is the arch enemy to the mortgage rates, thus rates have been rising with the economic news we’ve been getting.
What does this mean? If you’re a home buyer or someone looking to purchase a home, this is a good opportunity. We generally see home prices cool off during the summer due to a variety of reasons however with less buyers, there is less competition.
We saw a ton of competition in the spring, with rising rates and quite a few of those buyers stepped out of the market once rates hit the 6.00% range. Those buyers are likely to return in the fall, and as the recession looms, it’s more than likely we’ll have a competitive appreciating market then as well.
If you are looking to purchase a home or want to restart that home search and revisit numbers, now is an excellent time. It’s more than likely we’ll see an incredibly competitive market return in the fall, or the end of summer.
If you’d like to get started or chat about this, let me know – shoot me an email or give me a call. I’d love to discuss your options with you.