What is the Federal Reserve Planning?

Mortgage Rates | Mortgage Rate News

Fed sticks to pledge

If there was any doubt the Federal Reserve wasn’t going to raise interest rates, forget about it. Last year they got it wrong, calling inflation ‘transitory.’ This time around, Chairman Powell is on a mission to flatten inflation once and for all. Or at least get it down to 2%. Expect another 75-basis-point hike from the Fed coming out of their policy meeting on September 20th and 21st.

It’s important for homebuyers to lock in a rate before this meeting to guard against any potential mortgage rate spikes.

Fall Real Estate Market Preview

Summer isn’t officially over until September 22nd, but it’s already feeling like fall in many parts of the country. While homebuying typically slows down in the fall, this particular season could be an ideal time to take advantage of slightly declining home prices.

Inflation, rising mortgage rates and a recession might have you thinking, ‘no way,’ but there are a number of factors you can control to put yourself in a good position to buy when the right home comes along.

Mortgage rates tick down

The recent 30-year fixed is down to 6.12% as the market processes the Fed Beige Book, a report typically published two weeks prior to the Fed meeting. The main takeaways were U.S. economic growth prospects were weak and set to decline over the next year.

At the same time prices are beginning to moderate, with some sectors even declining. While this may sound dire, let’s take the glass-half-full perspective and recognize that the Fed rate hikes are working to help cool the economy. Still, inflation has been over 8% for five straight months so the Fed and the economy still have a way to go.

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