Mortgage Rates – Where Do They Go Now?
After the Federal Reserve statement on Wednesday you may be wondering where will mortgage rates go from here? If you are not sure what I am talking about, check out the article on NPR about the Federal Reserve statement. So what does this mean for mortgage rates?
Where they go from here, may take looking back at where they went on prior fed rate hikes.To understand this you would have to look back to 2004/2005, early 2016, and again at a few points in 2017 as well. Because ironically after each of these rate increases mortgage rates have actually gone down from there. You have to remember the Fed Funds rate is short-term borrowing, and mortgages are 30-year bonds. So yes, eventually we could see mortgage rates go up as a result of what they actually do with the Fed Funds rate later this year and into next. However, what I would pay closer attention to right now is inflation and the Korean Peninsula. Because these are more of the driving forces I would say will have an immediate impact to mortgage rates. And given if you are thinking of refinancing or buying a home it may be now. Right now, mortgage rates are sitting near their best position since right after the election (you know when rates went up .5% in 4 days).
So as you get ready to watch this video, maybe check out a prior post about rates earlier this year after they increased the Fed Funds rate as well. Sound similar? So if you start to see advertisements based on creating fear about mortgage rates, learn more about us and give us a call before you decide on what you are going to do, we will be honest with you.
Check out this short on a bit more on mortgages rates! – Ray @MortgageMaestro