The Fed met this week and as expected, raised rates a .25%. This truly surprised no one – it had been priced into the market already. They also announced that there may be one more increase this year, at their December meeting.
The Fed also projected 3 increases in 2019. They are watching the inflation rates and trying to keep inflation at about 2%. If the economy continues on it’s current path, we can expect the Fed to continue with rate increases.
When the Fed increases rates, it affects short term rates, like 2 year treasuries, it also affects credit card rates and any adjustable rate mortgages. There are some that feel the rate increases may affect economic expansion. They feel that there may be a brake put on building, etc and we may see rates improve because of this.
Do you have a home equity loan? Expect the interest rate to go up .25% with this rate increase. Remember there will probably be another increase in December.
Mortgage rates have increased in the past few weeks so if you have been thinking about buying, you may want to check with your loan officer. I have seen some programs increase as much as .375-.50% and that can affect what you can qualify for. If it’s been a few weeks since you have talked to your loan officer, you may want to check in again. Find out what the program you are using is doing. Are the rates increasing? If so, the amount you may qualify for may be less than you expect. With interest rates changing, it’s a good idea to stay in touch with your loan officer to make sure you can qualify for the home you want!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
