Fed Raises Interest Rates - What This Means for You...

The Federal Reserve Officially raised interest rates for the first time this year and forecasts a steeper path for borrowing costs in 2017. The immediate effect on mortgage bonds/rates has been negative, which has lead to lenders re-pricing their mortgage rates for the worse. For example, this morning the 15 Year Fixed rate for a $417,000 loan amount started at 3.375% with no points, but after the Fed Rate hike this rate now comes at 0.25 points ($1,042.50) charged to the borrower. 

In the short term we are advising our clients to lock the available interest rate until volatility dies down.