Main Content

FED Funds Raise Again by .75%

FED Funds Raise Again by .75%

FED Funds Raise Again by .75% this morning (September 21st) based on economic data over the last few months. Many economists fear that the comments by the FED weigh over the future of rates and the economy.

The FED’s goal is to slow down inflation. We all know that. The consequence of such a hawkish tone is pushing the economy into a deeper recession. They are now shooting for a year end FED funds rate at 4.4%. This is higher than expected. Most of the talking heads wish that the tone and direction from the FED would be for the rates to hold and let the higher rates begin to get inflation under control. We are certainly seeing sectors of the economy start to cool.

That brings us to housing and mortgages. While the market has become “healthier”, some buyers are shying away from purchasing due to higher interest rates. What I mean by healthy is that buyers and sellers can now have a real conversation and negotiation; not a one-sided demand dictated by sellers.

You Can Still Buy a Home in Coachella Valley In Spite of Higher Interest Rates

We are still seeing a very active market in which borrowers can buy a great property at a stable price, with the ability to refinance rates when they come down as projected in 2024. By taking this action, borrowers can buy a home they love and have confidence that the payment in the future will lower as rates fall. Most of our clients are currently closing their loans with 7-year and 10-year arms, which are fixed for the initial duration, amortized over 30 years. This gives them the confidence of a fixed rate for a prolonged period, with a lower interest rate than a fully amortizing 30-year fixed rate. A safe and more affordable way to finance.

Looking forward, most economists and even the FED notes suggest interest rates starting to lower in 2024. By purchasing a home today, it allows you to acquire a home you truly desire, with a future plan to refinance and lower your payments.

The great benefit of real estate is that over time, most properties appreciate. Time frames vary by area, but it is still the greatest way for people to build long term wealth.

Posted by Team Member, Dean Rathbun

888-455-2847 Toll Free Ext. 211
www.DeanRathbun.com

United American Mortgage
DRE 00998943/NMLS 98516 NMLS #98516 l CA DRE #00998943 | AZ  LO-1001564 | CO #100017802
UAMCO DRE #01154798 | UAMCO NMLS #1942

10 Get In Touch

Contact Us

Call Mary at 760.567.7282 or fill out the form below

Keep up to date with the latest market trends and opportunities in La Quinta, Caliifornia

    Skip to content