The Fed Increased "The Rate." What Does that Mean?
The sky is falling often happens in the mortgage world.
The increase is to the short term rates. To the consumer this means the MasterCard style of credit will be increasing on the next statement. HELOC’s (Home Equity Lines of Credit) will be going up on the next statement. Mortgages may see an improvement in rates, stay the same or increase. Wow, profound insights right? Let me explain. This week the market heavily factored in the Fed increase to mortgage rates. With an expected range from .25-.75% increase the market moved up slightly aggressively. In this instance, the Fed increase is only .25. The market is now making corrections for the smaller increase. One important note: traders make money regardless of which way the money is flowing, up or down; doesn’t hurt to press volume in a direction that will require correction. Today, an increase means an improvement to rate. Here is your market wrap for today; happy trails.