|As expected, the Fed again increased rates by 0.25% at their most recent meeting.
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:
This is the ninth increase since March 2022.