Interest rates are on the rise, and today we’ll be getting to the bottom of why this is taking place and why it matters to you.
Many people are wondering what’s going on with interest rates today. To help answer this, I recently sat down with Eric Almquist of Benchmark Mortgage to discuss this critical subject.
According to Eric, it’s been some time since we’ve seen conditions like those we’re seeing now. The Federal Reserve, which meets once every six weeks, is currently in a tightening cycle. Recently, they’ve been making adjustments to short-term rates with the intention of suppressing potential future inflation.
However, while it is true that short-term rates are set to rise once more before the end of 2018, this does not mean that mortgage rates will be directly impacted.
So though increases in short-term rates may ultimately lead to a slow increase of long-term rates, this is more of a correlative happening than a causal one. All it truly indicates is that our market is beginning to balance out. In fact, an increase of mortgage rates is generally the result of another positive shift—like the drop in unemployment.
In short, everything in our market is connected. Also, rates today are still historically low. This means it’s still a great time to buy. All of these conditions are both relative and cyclical.
If you have any other questions or would like more information from Eric, feel free to reach out to him at (402) 933-1141 or send him an email at eric.almquist@benchmark.us.
And, as always, if you have anything you’d like to ask me or my team about, please give us a call or send us an email. We look forward to hearing from you soon.
According to Eric, it’s been some time since we’ve seen conditions like those we’re seeing now. The Federal Reserve, which meets once every six weeks, is currently in a tightening cycle. Recently, they’ve been making adjustments to short-term rates with the intention of suppressing potential future inflation.
However, while it is true that short-term rates are set to rise once more before the end of 2018, this does not mean that mortgage rates will be directly impacted.
So though increases in short-term rates may ultimately lead to a slow increase of long-term rates, this is more of a correlative happening than a causal one. All it truly indicates is that our market is beginning to balance out. In fact, an increase of mortgage rates is generally the result of another positive shift—like the drop in unemployment.
In short, everything in our market is connected. Also, rates today are still historically low. This means it’s still a great time to buy. All of these conditions are both relative and cyclical.
If you have any other questions or would like more information from Eric, feel free to reach out to him at (402) 933-1141 or send him an email at eric.almquist@benchmark.us.
And, as always, if you have anything you’d like to ask me or my team about, please give us a call or send us an email. We look forward to hearing from you soon.
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