March 2017 – Fed voted 9-1 to hike the Fed Funds Rate by .25% today – and mortgage rates dropped considerably
immediately. The notes from the Fed’s meeting indicate they are considering 2 additional Fed Funds rate hikes in 2017 (depending on economic data and indices such as inflation).
With our current economic and political environment, this rate hike has and will have more press than most. While many hear “rate hike” and and do not differentiate which rates were actually “hiked” today. It’s important to remember:
FED FUNDS RATE HIKE DOES NOT EQUAL MORTGAGE RATE HIKE
Mortgage Rates Respond to Fed Rate Hike
Currently, mortgage rates are LOWER after the announcement of the .25% Fed Funds Rates hike. There is much more that goes into whether or not mortgage rates increase. This improvement in mortgage rates could continue, or it could do a wild 180 degree turn and head south. Too soon to tell.
For now, home-buyers can celebrate all the way around today. Home loan rates are better AND their stock portfolio is better at the same time.
By Jeremy House