How Will Today's Financial Market Affect You?

Let’s take a look at the what we can expect from interest rates in the future.

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Recently I met up with Tom Ross from Bay Equity to discuss interest rates, how the financial market is doing, and what this all means for you.

First of all, the federal funds rate increased .25%. This means we can expect a rise in interest rates. However, the federal funds rate doesn’t necessarily have a direct impact on interest rates—but it does “set the table,” so to speak, for them to change.

At the same meeting where the Fed made that increase, they also decided to no longer buy mortgage-backed securities. Previously, when they were still doing so, it was for the sake of something called quantitative easing.

Quantitative easing is when the Federal Reserve is printing money and buying mortgages to keep interest rates low. They haven’t been buying mortgages for a while, though. Instead, they would funnel money from loan payoffs back in.

We are here to help you make the best decision.

For buyers, this could well mean a rise in interest rates. Additionally, there is indication that the rates will be raising over a long-term period.

So for those who are thinking of buying, get an analysis of the current interest rates as compared to the next several years.

In any case, we are here to help you make the best decision.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.