The U.S. Federal Reserve has announced a 0.75% increase in the federal funds rate - Why Did Tacoma Mortgage Rates Improve Today?
The Fed announced the fourth interest rate hike of the year today. June’s 0.75% hike was the largest rise since 1994, and the combined increase of 150 basis points over June and July represents the largest increase in Fed rates since the early 1980s.
But Why Did Mortgage Rates in Tacoma improve today?
Mortgage rates are typically priced each day with a forward looking perspective. Meaning they are set with what the market expects to them to be in the next 6 months. When that expectation changes, rates will become more volitle until the market stablizes. So when the Federal Reserve increased rates today, the market was already expecting that to happen and then once it did, interest rates improved.
I would expect interest rates to remain at these levels now until the markets startsto process if more rate hikes are coming or if it looks like the Fed job has been done and our economy starts to cool down.
If you are in the market for a home loan in the Tacoma Lakewood area, feel free to reach out for a rate quote. I'm an independent mortgage broker with access to multiple lenders and can shop around and compare different lenders rates. You may be suprized how much interest rates can vary from lender to broker.
Kevin Tinsley NMLS ID 108542
Tacoma's Source for Home Loans - Purchase or Refinance - I can help
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.