The Federal Reserve is picking up the pace, voting on 2 weeks ago to raise its key interest rate just three months after its last rate hike. The Fed announced that short-term interest rates will increase by one-quarter of a percentage point and suggested that two similar increases likely will occur later this year. Mortgage rates aren’t directly tied to the Fed’s short-term interest rates but tend to follow them.
My advice to Heroes especially Military if you have a rate that is not fixed, change it to a fixed rate. Sign up at www.PolkCountyHeroes.com if you need to refinance or have questions about it.
On one side homeowners who already have lower mortgage rates locked in may have less incentive to trade up or buy a new home. Their increasing desire to stay put could continue to press already tight inventories of homes for-sale across the country. However this little increase might motivate many others to hurry up and move before they go even higher.
What does this mean to a Hero in monthly payments?
As of today, the 30-year fixed-rate mortgage averaged 4.39 percent, according to Mortgage News Daily. Last summer, rates were near record lows of 3.44 percent.
In anticipation of the Fed’s move, the market has already seen mortgage rates increase more than a quarter of a percentage point over the past few weeks.
Home buyers likely will need to expect to pay about 3 percent more each month on their loans for a $250,000 home if they had a 20 percent down payment—or about $29 more per month or $348 more over the year, Smoke notes.
“The small changes we’re seeing shouldn’t price too many people out” of homeownership, Smoke says. “But if you keep adding it on, it will price people out.”
The Fed has raised rates only twice in the past decade. But Wednesday’s decision to raise rates again, just three months after the last increase, does signal a quicker pace for the year. The Federal Reserve voted in December 2016 to increase rates by one-quarter of a percentage point.
“Rising inflation will predominantly dictate the next monetary policy decision, but another short-term rate hike should be expected by the end of the summer,” Lawrence Yun, the chief economist of the National Association of Realtor. Right now, rents and housing costs are increasing faster than other components because of the stubborn housing shortages in much of the U.S. To contain inflation and slow the pace of future rate hikes, more home construction is needed now.”
We are currently doing everything we can to make a tangible difference and help those who so deserve it.
Military (Active and Retired)
Health Care (Nurses)
How do we help? We give back 25% of our commission to the Heroes directly when he/she buys a home.
They will received .7% of the sales price. Example $200,000 home and you will received a check for $1,400.
Want more information? Feel free to email me at Dory@PolkCountyHeroes.com and I will be happy to help you.
Want to search all MLS properties on your own and check out the prices? Here is my free link.
Dory Rodríguez Joseph
Dory Rodríguez Joseph Real Estate LLC