The Fed’s policy rates just got a push!

We may be nearing the end of rate hikes.

The Fed statement released after the meeting indicated economic signals, including continuing inflation and the strong labor market, warranted the rate hike, while also expressing confidence in the U.S. banking system. However, the Committee signaled that the end of rate hikes may be on the horizon based on their projected “terminal rate” of 5.1% which is only slightly higher than the current level.

Please Note: Mortgage rates are impacted by market forces beyond Fed actions and will not necessarily change at the same pace as the Fed’s moves. They often shift before the Fed acts, in anticipation of changes.

Should the Fed’s news change your home buying or financing plans?

No.  You should focus on the specific home that you are considering as you can always refinance if rates come down in the future.

Background on the Fed:

• The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.
• The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.