Interest rates are rising, and what that means for you.
Let's talk Fed Interest rates and Mortgage Rates.
Today rates will move depending on the FED. We don't know what the federal reserve hike amount will be so it may get WORSE or BETTER!
Monday was one of the five worst days for mortgage rates in the past twenty years 😳.
Last Friday was pretty bad for mortgage rates too, Inflation numbers were worse than expected and it spooked the markets.
At one point, Mortgage Backed Securities were down more than 160 basis points. That is MASSIVE!! Movement like this hasn't happened this fast since 1994ish. Inflation and Fed inaction are causing rapid rate increases.
What does that mean? Unfortunately, that means if you were quoted a 5.5% on Friday, rates are now 6.25% or higher.
There are projections for rates to continue to push up to 7% by end of summer 😬
This is unprecedented. But I promise you… your loan officer is not lying.
But saying all of this, it is also projected that home values will continue to also increase. It's not the time to step back from buying. Rent is going up everywhere, it's still better to buy than rent for most! Interest rates can always be refinanced in the future if a drop occurs.
👉👉 Also, if you were pre-approved a few week
s ago, make sure you reach out to your loan officer again. You may not qualify for as much as you qualified for, even if you got pre-approved last week.
Lastly, it wouldn't hurt to give your loan officer a hug. They all need it. ♥️