The Fed hikes interest rates 75-bps
As expected, the Federal Reserve hiked interest rates 75-bps on Wednesday. The latest interest rate hike has pushed rates to 3.75%-to-4.00%. That’s the highest interest rates have been since 2008.
The Fed also provided additional commentary that indicated that additional rate hikes were likely, but the size and pace may be adjusted based on inflation data that comes out ahead of the next FOMC meeting in December.
How did mortgage rates react to the Fed?
A 30-year fixed mortgage rate ended the day at 7.12%, up slightly for the day. Mortgage rates had dipped a little in early trading, but slowly crept back up throughout the day and ended higher.
While home buyers likely aren’t thrilled with the direction that mortgage rates went after the announcement, this rate hike from the Fed didn’t cause the mortgage market to spike as much as the previous hikes did.
Were there specific comments from the Fed on housing?
Federal Reserve Chairman Jerome Powell provided comments on several aspects of the economy on Wednesday. However, some of his most pointed remarks were focused on the housing sector. Powell stated that, “(the) housing market needs to get back into balance,” but also claimed that, “we don’t see financial stability issues from the housing sector.” He did also acknowledge that “housing was significantly impacted by higher rates.”
It’s clear that the housing sector is one of the areas of focus for the Fed and should continue to get additional attention.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
