If you were watching the financial pages yesterday, you might have seen that mortgage rates spiked after the Fed released the Minutes from their most recent meeting, hitting a 6-week high.
Rates have been simmering at an extreme low for the last several years, but as Matthew Graham with Mortgage News Daily points out “the Fed is leaving its June rate hike options open.” Although the Fed rate doesn’t directly dictate mortgage rates, mortgage rates do tend to fluctuate in anticipation of possible hikes from the Fed, Graham explains. Meaning: If the Fed increases their rates when they meet next month, that could impact mortgage rates — for better or worse.
What does that mean for you? Well, if you’ve been on the fence about buying a house, now would be a good time to jump off.
With mortgage, rates fluctuate daily. We don’t know how yesterday’s spike will play out just yet, and it’s nearly impossible to predict future rates, but the Fed is picking up momentum. If they decide they think the economy is improving, there’s a chance they could increase their rates when they meet in June. Don’t be caught off guard; you want to lock down a rate as soon as possible.
If you want to know more, don’t hesitate to give me a call — and I suggest you do it sooner rather than later. We can talk through your specific financial situation and figure out the best next move.