On Wednesday, June 16th, the Federal Reserve released a policy update after their two-day meeting. The Fed announced interest rates will be held at their current level of 0-.25% but foreshadowed a possible increase by the end of 2023. The progress on increasing vaccination rates across the United States has been a major factor in stimulating economic activity and strengthening employment. However, the strength of the economy and therefore it’s impact on rates will continue to rely heavily on the path of the virus.
The prediction of inflation increasing coupled with the foreshadowing of a formal rate hike in 2023 are pushing mortgage interest rates up. Even though rates may start to rise from record lows, it may take a few months as the market continues to adjust and normalize to the recent announcement.
There is a great sense of urgency to speak with a mortgage professional at Hall Financial about your current financial situation and what the recent Fed announcement could mean for you. One of the best moves you can make in response to this news is to refinance and lock in a low rate now while you still can. Call Hall Financial now at 248-308-5000 or you can chat with us online.
Sources:
“Fed holds interest rates near zero, sees two rate hikes in 2023,” 2021, bankrate.com
“Greg McBride: What are interest rates and how do they work?” 2021, bankrate.com
