Financing November 3, 2022

Another Interest rate hike.

This morning the Fed has announced the .75% increase to the Federal Funds rate as the market was expecting.
This was no surprise to anyone, and as was mentioned to us this morning on a zoom sales meeting all eyes were going to be on press conference and Jerome’s Powell’s words. Markets are currently digesting the commentary made. A couple important, conflicting quotes shown below…
“In determining the pace of future increases in the target range the committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation and economic and financial developments,” the policy statement said.
“It is very premature, in my view, to think about or be talking about pausing our rate hikes,” Powell stressed. “We have a ways to go. Our policy, we need ongoing rate hikes to get to that level of sufficiently restrictive [territory] — and of course, we don’t know exactly where that is. … I would expect to us to continue to update it based on what we’re seeing with incoming data.”
Although the rates are going to increase, properties are still going in to escrow and selling.  Don’t let this news discourage you from buying a home.  Date the rate, Marry the house!  Refi as soon as rates drop to a desirable rate.
For any more information this news feel free to contact me at 562.964.8413.

Photo by John Guccione