In the long run, it's you and me, brother. Either your insurance rates will shoot up, or your I(name your state)PERS return will come up short so the state will throw in money to cover the shortfall from poor investments and hit the general pop on taxes.
Actually, this is a positive sign. It shows that the Fed is slowing their initial plans, and that the positive inflation reports are being noticed and taken into account. This rate hike wont actually impact interest rates, as most had planned for a higher rate hike and rates already have that baked in. If anything, actually this news will likely lower rates slightly (at least specific to the housing market).Wont help the housing market...
Federal Reserve raises interest rates to highest since 2007, sees higher rates in '23
The Federal Reserve raised interest rates by 0.50% on Wednesday, capping a year that saw the central bank lift rates by 4.25%.finance.yahoo.com
Interest rates were on decline the last month+, but this will not drive them lower. In the article I posted, banks are predicting rates to tick up.
In the article you posted, it sees the Fed raising rates to 5% in 2023- You realize that mortgages rates are currently in the high 5% to low 6% range, because initial reports in the fall when rates began to rise were indicating that number to be closer to 6%. Mortgage rates shot up so drastically because they were anticipating steeper and more aggressive rate hikes than what we have seen initially- this is why the news today was actually promising. Mortgage rates are progressive rather than reactionary. This is why you saw mortgage rates stay steady (actually small pricing improvements) today when the Fed announced this.
The 10YUST has barely moved on the news. Nothing to see here.Wont help the housing market...
Federal Reserve raises interest rates to highest since 2007, sees higher rates in '23
The Federal Reserve raised interest rates by 0.50% on Wednesday, capping a year that saw the central bank lift rates by 4.25%.
...and for those that don't know, the 10 YR treasury is what you should watch if you want to know which way mortgage rates are heading.
A lot of this is from looking back from this year to last year though. Immediate inflation can be at zero and still stay at high numbers when looking YoY due to the inflation we saw earlier in the year. CPI is 7.1% YoY but only .1% MoM.
You’re apparently looking in the wrong places. 5.625% is our going 30 year fixed rate at the moment.
