Interest Rate Hike
The Federal Reserve Board has hiked rates for the 17th consecutive time over the past two years, bringing the Fed Funds Rate to 5.25%.
But what was most important about the news was the wording of the policy statement, saying that "economic growth is moderating...and inflation expectations remain contained...yet the Committee judges that some inflation risks remain."
So what does this mean? The fact that inflation expectations remain contained is good news for long-term bond investors and fixed home loan rates, but it's not clear if the Fed hikes are done quite yet.
And the Fed Funds Rate does directly impact many other rates, including Adjustable Rate Mortgages and Home Equity Lines of Credit. And although those programs probably saved you a bundle over the past several years of low interest rates – times have changed, and it’s likely time to give your whole financial picture a once over and see if any adjustments are needed.
If you need an introduction to a loan officer, contact us or visit our website. We know experienced, knowledgeable people who you would benefit from knowing.