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, Wednesday 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 Wednesday afternoon this rate now comes at 1 point ($4,170) charged to the borrower. This change happened within the 6.5 hours the markets were open on Wednesday...

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

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