Last week, mortgage rates saw a significant increase, surpassing 7%, as a result of a quarter-point rate hike from the Federal Reserve. This rate hike, which brings the benchmark borrowing rate to 5.25%-5.5%, is the highest level in 22 years. The Fed has been raising the borrowing rate for banks over the past 17 months to combat inflation. However, there is uncertainty about whether this will be the last rate hike, as the Fed indicated that they are considering another hike in September. As a result, mortgage rates are expected to stay high for the foreseeable future. The increase in rates has also affected home prices, which have gone up 2.6% year-over-year, and inventory has decreased by 17% in July 2022. Despite this, there is hope that the housing market will improve later this year if this is indeed the last rate hike. In the meantime, potential homebuyers are advised to take advantage of the current rates and consider refinancing in the future when rates drop. It’s also recommended to compare offers from multiple lenders to find the best possible rate.
Federal Reserve Raises Interest Rates, Propelling Rates to Over 7%
Denial of responsibility! Swift Telecast is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – swifttelecast.com. The content will be deleted within 24 hours.