Federal officials voted nearly unanimously yesterday to raise key interest rates. But did you know that mortgage rates actually went down on the news?
Because this rate hike was anticipated, financial markets had accounted for the move, so the Fed’s announcement came as no surprise. Nervousness in the financial markets had actually been causing rates to go up over the past few weeks, so when the news wasn’t as bad as expected, rates relaxed, causing mortgage rates to fall for their biggest intraday drop of the year.
Mortgage lenders offered mid-day rates yesterday that were down 0.125% on average, bringing conventional 30yr-fixed rates back down to about 4.25%.
All of this is great news for buyers who feared a boost in interest rates would cut deeply into their buying opportunity. There’s still a chance to lock in a low rate, but you need to act quickly.
And be sure to let us know how we can help in your search for the perfect home.