The Federal Reserve announced its second interest rate increase since December. And all indicators point to more increases. This can have an impact on both your existing mortgage, if you are in an adjustable rate, and on future mortgage rates. The short story here is that it is time to get financed. If you have been thinking of getting a mortgage or refinancing, do it before the next increase.
Heller: Interest rates in the United States should have hit normal levels of around 3 percent by now given that the Federal Reserve has achieved all of its targets, a former Fed governor said Thursday.
“We have very low unemployment rate of 4.7 percent, we have inflation roughly at 2 percent, so rates should be normal now. And normal…would be at 3 percent. Instead, we are below 1 percent,” he said.
There are several other factors that will play into future Fed rate hikes. Trump’s decisions and policies play a part. Congress may not approve his stimulus package, and despite the Fed’s efforts long-term interest rates could fall. We have a fast-growing economy and low unemployment. These are all indicators that the economy can be headed toward a high inflation period.
You will have questions about how you and your mortgage is affected and we’re here to answer them. Take a moment to watch this CNBC interview and then give us a call at 303-485-2409. Rather email, no problem tricia@lendingmaven.com
