Welcome to The Roylin Report, your source for what’s happening in real estate now. I’m your host, Roylin Downs.
So I thought I’d offer a quick update on what’s happening with mortgages because I got an update this last week from Lynda Bernal, who’s our in-house lender. She’s with Prosperity Home Mortgage and she wanted to let us know what’s happening with the Fed because it has an effect on our interest rates now.
The Fed had a two day meeting this past week and they hyped the Fed Funds Rate by three quarters of a percent. It was than the half percent that they had been planning. So it kind of was an interesting shift and people want to know why that happened. This is important because large rate hikes are a strong signal that the Fed is getting serious about working on inflation and getting it back down to the stated target of 2.3% for 2023.
So what happened with that?
The stock market and bond markets both reacted favorably with mortgage bonds ending the day at a whopping 122 basis points up. We probably all saw that but we didn’t quite necessarily correlate what happens.
So what does it mean to us in the real estate market? Well, it means that mortgage rates should improve especially if the bond trend continues. So here’s the deal. We’re gonna keep our eye on it. You and I. I will keep updating you on
where interest rates are going. And if you have any questions about your particular situation, please don’t hesitate to
check out my information, and Lynda Bernal’s information that I’ll be putting in the box below.
I will look forward to reaching out and helping you with all your real estate needs. Thanks so much and I look
forward to working with you.