In late March, the Fed raised the bank to bank interest rate by 0.25%. However, that doesn’t mean mortgage rates jumped as well.
In fact, the opposite is true. Mortgage rates actually dropped 0.25% following the Fed increase.
Bad news for the economy is usually good news for interest rates. For example, the stock market reacted negatively to a few things recently and that was good news for mortgage rates. A 0.25% drop might not sound like much, but on a $300,000 home, that equates to saving $45 a month or $15,000 over the life of the loan. It also means you can get approved for $10,000 to $20,000 more on a home loan.
Most people think the Fed dictates mortgage rates, but the market does. Rates change daily, sometimes even more than once a day. To get the most up-to-date information on mortgage rates, the best thing to do is contact your local mortgage lender. If you need any recommendations, I’d be glad to help out.
If you have any other questions, please feel free to give me a call or send me an email. I look forward to hearing from you!