SD Capital Funding’s back with a special mid-week edition: Fed Update!
The Federal Reserve uses interest rate policy to achieve its goal of fostering maximum employment and price stability. The June meeting indicated that the labor market has continued to strengthen and economic activity is rising at a strong rate. The good news: The Fed did not hike interest rates this time around! The bad news? They did set the stage for future rate hikes. So what does all this mean for mortgage rates? As the Fed continues to increase rates, it will get more and more expensive to purchase a home. With mortgage interest rates already in the high 4s, many industry experts expect the 30-year fixed rate to hit 5% by the end of the year.
With mortgage rates at multi-year highs, Realtors and homebuyers are still optimistic about the real estate market. As new home sales rise, new Realtors join the workforce – 29% of Realtors now have less than 2 years experience, it’s time to make way for the new kids on the block!