Texas Home Buyers Will See Higher Rates With FED Increase

Mortgage and Lending with Service First Mortgage, NMLS #166487 NMLS 217454

The Fed Raised Rates What Does That Mean To Texas Home Buyers?
The Fed Raised Rates What Does That Mean To Texas Home Buyers
As expected, the Federal Reserve announced today that it would raise its benchmark interest rate by a quarter of a percentage point.

“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent,” the Fed’s policy-making committee said in a statement. “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation.”

This is the first time the Fed has increased interest rates in the last two years and the second time in the last 10 years.

Have you ever tried to hold a life preserver underwater? It's hard, isn't it? It can be equally hard for the Fed to keep rates low against a rising tide of market expectation.

The winds of change.
The Fed's actions to keep interest rates low have worked for a time. But eventually market forces will take over. In fact, the market has recently become more influential, and the Fed can do little to counteract the trend.

The trouble with targets.  The Fed has announced some economic benchmarks, including inflation and unemployment rates, for adjusting their current policies. Not everyone knows when to expect action, smart investors are operating ahead of the curve.

The factors.  Rate increase triggers include positive economic news and hints of policy change from the Fed. Market influence comes from mortgage bond investors, institutions and sovereign nations. When these forces act in unison, their influence is greater than the Fed's alone.

What can we do? We can lock in rates for purchase or refinance before the change. A fixed monthly mortgage payment now can create a sense of stability for decades to come.
Waiting can have a cost.  The combination of higher rates and home prices can make what's affordable today out of reach tomorrow.

Are you ready to take action before it's too late? If so, give me a call at 214-945-1066 or complete an online application. There's no charge for a prequalification and your initial consultation.

Richard Woodward, NMLS 217454Apply online now
Your Local, Direct, 5 Star Rated Mortgage Lender
Office:  (214) 945-1066 
Interlinc Mortgage Services, LLC., NMLS 205696
7711 San Jacinto Place, Ste 100 Plano, Texas 75024

Licensed by the Texas Department of Savings and Mortgage Lending (SML) Mortgage Banker Registration. InterLinc is an Equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to buyer and property qualification. Rates and fees are subject to change without notice. Link to RMLO Complaint recording instructions.


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Richard Woodward NMLS#217454

Service Beyond Expectations! Your Texas Lender
7711 San Jacinto Place, Ste 100 Plano, Texas 75024