This month’s Federal Reserve (FED) meeting outcome wasn’t as great as June 2023 when we saw a hold on interest rates as news reports shared that for July 2023, target rates did increase a quarter percentage bringing it between 5.25% and 5.5% - highest in 22 years. The increase of the FED rate also increased the Prime rate to 8.5%, the lowest rate of interest at which money may be borrowed commercially.
When the Federal Reserve increases interest rates, it can have implications for both home buyers and home sellers. Even though it is not a direct reflection, when the FED & Prime rates increase, it can lead to higher mortgage rates, which can reduce purchasing power. The news that followed July’s increase on FED & Prime did increase the mortgage rates, but the consensus is that they will rebound in August.
That means if you’re a homeowner, you may need to re-think your selling strategy to ensure top dollar is earned. With potentially less home buyer competition in the market, higher rates often slow home price growth, too. Which is why it’s crucial to work with a real estate agent who understands supply and demand, and the power of marketing and execution.
It’s important to consider your financial situation and the impact increased mortgage rates can have on your situation before making purchasing decisions. If you’re in need of financial advice, Drew Wayman of Fairway Mortgage is a great resource to have on your side. He’ll meet you by phone, in-person, or answer any questions by email regarding your personal situation, helping to provide solutions that reflect your circumstances and best meet your needs. Read more about Drew here.
It’s important to consider your financial situation and the impact increased mortgage rates can have on your situation before making purchasing decisions. If you’re in need of financial advice, Drew Wayman of Fairway Mortgage is a great resource to have on your side. He’ll meet you by phone, in-person, or answer any questions by email regarding your personal situation, helping to provide solutions that reflect your circumstances and best meet your needs. Read more about Drew here.
In Good Health,
Daniel Henry, AH Heritage Home Group