😳 "The Fed just hiked mortgage rates!!!"

(Don't panic, this isn't true!)

Many people confuse rate increases made by the Fed (to the fed funds rate) with an increase in mortgage rates. However, that's not the case.

Why is that? 🤷‍♂️

✅ The simple answer is that the Fed rate hikes are intended to slow down the economy and hopefully curb inflation. The Fed does not set mortgage rates or any other consumer rates, but all of those rates are affected by the Fed's rate hikes. When markets anticipate the Fed will raise rates, mortgage rates do move higher, but months in advance of actual rate hikes. Remember when rates moved higher in June? That was when markets anticipated that a July Fed rate hike was likely, and reacted. Once the Fed actually raised rates yesterday, markets had already anticipated the hike and it had been factored into current mortgage rates.

Although it is a bit more complex than that, the main takeaway here is that 👉 MORTGAGE RATES DID NOT GET WORSE! 👈

In fact, the rates you have access to may even have improved.

If you'd like me to take a look at your situation and see what rates are available to you, reach out anytime. I'd love to help you.