As expected by most Wall Street Analysts, the Federal Reserve voted during their March meeting concluding on March 15, 2017 to increase their benchmark interest rate by 0.25%. This is the third interest rate hike since the financial crisis where they had been held at historic lows to assist in the improvement of the economy during that time. When asked about future rate increases, Fed Chairman Janet Yellon noted, “I remember when rates were raised at every meeting, I think people thought that was a gradual pace, measured pace, and we’re certainly not envisioning something like that” (referencing a period from 2004-2006 when rates were raised 8 times each of those years).
We receive numerous questions about how this impacts mortgage rates. Your Licensed Mortgage Professional at Homeowners Financial Group would love to discuss your mortgage financing needs with you. Understanding your purchasing power with rates at 4% or 5% is the key takeaway you need before looking at homes with your Realtor. When talking rates, know that they can change at the drop of a dime, so contact us today to schedule your prequalification appointment!