"The Fed just hiked mortgage rates!!!"
(Don't panic, this isn't true!)
Many people confuse increases in the fed funds rate made by the Fed with an increase in mortgage rates. However, when the Fed raises policy rates it actually HELPS mortgage rates improve!
Why is that?
The simple answer is that the Fed rate hikes will slow down the economy and hopefully curb inflation, and inflation is actually what drives rates higher. As markets anticipate the Fed will have to raise rates, mortgage rates do move higher, but months in advance of actual rate hikes. Once the Fed actually raises rates, we often see mortgage rates improve slightly afterwards.
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.
