The Federal Reserve pauses rate hikes…for now
As expected, the Federal Reserve decided to pause rate interest hikes after their June meeting. However, they also announced that this was only a pause and rate cuts won’t be forthcoming any time soon. In fact, the Fed stated that there will likely be at least two more rate hikes before the end of the year.
The markets were expecting the pause, but it appeared that most were surprised by the hawkish tone that Fed Chairman Jerome Powell had at his post-meeting press conference. Most markets ended the day in the red.
How did the mortgage market react to the announcement?
While stock and bond markets showed volatility, the mortgage rate market barely moved after the interest rate announcement. The national average for a 30-year, fixed-rate mortgage closed down 0.01%, and ended the day at 6.97%.* It did briefly tick over 7.00%, but ended the day slightly lower. Given the news the market received today, it may take a day or two for traders to digest everything and choose a direction to move into.
What’s the secret to buying an imperfect house?
Finding the perfect home in the current housing market is a challenge, if not an impossibility for most homebuyers. So, how do you get by if you need to buy an imperfect home? A recent article from Realtor.com details a few tips to consider if you want to end up happy with a home that might not be everything you want.
Write down your must-haves and get on the same page with your partner or spouse, if you have one. This will help you stay focused on what you absolutely need in a home.
You also may need to think about the potential a home has instead of what you’re actually seeing. A large, messy backyard? Think about how nice it would look if you fixed it up. Ugly carpet? Consider how nice it would be with new flooring.
Unless you’re a cash buyer or have the means to afford whatever you want, you’ll need to keep an eye on home affordability, and make sure you’re getting into an imperfect home that won’t be more than you can afford.
* National average rates accurate as of 6/14/23 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
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