New built home sales had a very big miss this week. The sales of newly built homes sank to the lowest rate since the start of the Covid pandemic. A decline of 16.6% in April from March, was far more than expected (signaling weakness amongst homebuilders) and were down 26.9% from April 2021, according to the U.S. Census.
Inflation has been dominating headlines for much of 2022. Federal Reserve policy decision making and rate hikes have contributed to some of the most quickly appreciating mortgage rates we have seen in years. There is a reason for it, whether we like it or not. However, this week’s question is: How can inflation eventually lead to lower mortgage rates?
Wednesday May 4, 2022 Jerome Powell and the Federal Reserve announced their short term interest rate hike of +0.50%. This brings the Fed Funds Rate to a range of 0.75% – 1.00%. Previous commentary about rate hikes through 2022, and possibly into 2023, remain in place as the Federal Reserve desperately attempts to cool and control continuous inflation across the economy.
Just in the month of March alone, some mortgage programs experienced rate increases of +1.0% or more (depending on the loan scenario). Many are asking us directly, and we bet more are asking themselves privately, “What do I do now?” In this article we will address some things you may need to consider now…
Wednesday March 16, Jerome Powell and the Federal Reserve announced their interest rate increase of 0.25%. After months of speculation and shifting opinions on where they would finally lay their decision, we now know what we’re facing in the immediate timeframe…
It is all but set in stone that the Fed will raise their short-term rate in March. During testimony on Wednesday March 2, 2022 Fed Chairman Jerome Powell said he still sees interest rate hikes up ahead as “implications for the U.S. economy are highly uncertain” from the Ukraine war.
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