For this week's video I wanted to discuss the Fed meeting. The Fed raised the Fed Funds rate by .25% and interest rates have gone down the last 2 days. Remember, the Fed changes the Fed Funds rate which is the rate that banks borrow money from each other overnight. This does not directly affect mortgage interest rates. Rates are going down right now because there is a chance the Fed won’t raise rates again this year.
This is great news for interest rates. Prior to this meeting it looked like rates were going to continue to go up all year. Now, due to the banking crisis, the fed is having to rethink their strategy and we might see lower interest rates quicker than expected. So, if you are looking for a home, now is a great time to make an offer. Once rates do come down there will be more competition and we already have an inventory issue. Weekly Newsletter
Cornerstone Mortgage Group
Georgia Residential Mortgage Licensee: 21412 • Company NMLS: 147913 • Individual NMLS: 147938