Have you heard that the “Fed” just raised interest rates—and immediately after, mortgage rates dropped?
Yes, it seems a little crazy, but it’s true. Here’s why:
Usually, markets anticipate Fed moves. That’s what happened here. In fact, investors were preparing for worse than the Fed delivered. The mortgage markets initially reacted favorably, and average mortgage rates fell, even if only temporarily.
What could all of this mean for you?
Fed Chair Yellen has indicated that policy rate increases may occur a couple more times in 2017.
If you’re in the market to purchase a home in Maine, it could mean that mortgage rates rise again in anticipation.
If you already have a home loan here in Vacationland, you may want to see how your current rate stacks up. Perhaps you’ll find that you still have an opportunity, or maybe you’ll simply be pleased to know that your rate compares favorably to what’s available today.
Want to see how rising rates and home prices can impact a mortgage payment? Check out this simple calculator.
I’m tracking rate changes daily and am happy to keep you informed whenever you like. Please reach out if I can answer any questions for you or help with financing (or re-financing) your Maine home.