*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
The Federal Reserve has an affect on short term interest rates and the way they fluctuate from day to day. They take into consideration the economy, inflation, unemployment, and other factors in order to decide what the rates do over the next few weeks.
Unfortunately, over the last year, we've seen rates rise at a rate that hasn't been seen in a long time, if ever. At the time I'm writing this article, we're looking at interest rates that we haven't seen since the 2008 recession. Not a great situation to be in.
According to an article published by Rocket Mortgage, "The Federal Reserve manages short-term interest rates to control the money supply. When the economy is struggling, the Fed lowers rates. These are not the rates given to consumers, but the rates at which banks can borrow money to lend to consumers.
When the Fed decides they need to tighten up the money supply, they raise the Fed rate. While this doesn’t directly increase mortgage rates, eventually, banks and lenders must do the same to keep up with their costs to borrow money from the Fed."
Contact me to learn more about where interest rates are at, and how we can get you into the home of your dreams.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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