Wrong! The Fed raised rates last week by .25%, so what does that mean for mortgage rates? Very little!
But our home buyers and sellers can be scared by the headlines and think their mortgage rate and housing payment will go up because of the Fed move. There is a very loose correlation between the Fed rate and mortgage rates (see chart below), but mortgage rates did not go up by .25% after the Fed move this week.
The Fed is signalling further hikes through 2019, so here is the 30,000 overview of what Fed rate hikes mean (or don't mean) for mortgage rates, so you can have a little ammo if the conversation comes up when you are working with your clients.
Fed Rate Versus Mortgage Rate (2000-2018) - Forbes Article:
The RJ Baxter Team, Denver Mortgage Lender
We are here to serve our clients and put our clients first....we treat every client with the same care and respect.
P.S. - Referrals are the life-blood of my business. If you know anyone looking to purchase or refinance a home, please forward me their name and number. I am at my best when I'm helping others!
Licensed in CO, CA, TX, FL, IL, and IA