FED Update | Inflation and Interest Rates
This past week, FED Chairman Jerome Powell confirmed that the Federal Reserve must continue to raise interest rates and hold them at a higher level until they are confident inflation is under control, even if unemployment rises, stating, “we will keep at it until we are confident the job is done.” While rate increases would bring down inflation, Mr. Powell did acknowledge, “it will also bring some pain to households and businesses. Those are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.” At the same time, U.S. stocks plunged - led by a sharp sell-off in technology shares, while bond yields rose.
The interest rates increased from 0% to about .125% for most loans on the Fed’s anticipated increase of .75% so we saw only a small increase to no increase because of increased demand for mortgage bonds with more money leaving the stock market. Given the latest news from the FED, it is still the best time to purchase and sell.
In this fluctuating market where loan guidelines are changing constantly, working with an experienced mortgage banker is more important than ever.
San Diego Funding is the most knowledgeable and quickest lender in San Diego and Orange County. We understand how to read complicated tax returns to get buyers approved.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.
Our loan officers are here - anytime - to answer questions and to you pre-approved and ready to purchase.