My New Blog

I never write these types of posts, with boring language on what causes rates to go up.  If you are like me, you just want to know what the rate is that day.  But, this recent change will dramatically raise rates and will also probably see them continue increase in the future.  The Fed has raised the "discount rate" from .5% to .75%.  The discount rate is the rate that banks borrow money at.  So this move will cause mortgage rates to increase.  This move really shows that the government is no longer focusing on keeping mortgage rates down.  This move on top of their decision to cut back the amount of mortgages they buy, proves this.  Which also kept rates low.  Like I mentioned in an earlier email I believe mortgage rates could go up to 6% by April.  Keep in mind, I hope mortgage rates don't go up but I do want you to be informed.  Feel free to forward this on to possible clients who are on the fence about what rates are doing.