The Federal Reserve Just Increased Target Rates – What It Means for You!

The Federal Reserve Just Increased Target Rates – What It Means for You!

The Federal Reserve has just shared their perspective on the economy – so how does it impact your homebuying process?

Today the Fed increased their target rates by .50%. Importantly, this doesn’t mean that prevailing mortgage rates increased overnight! In fact, average mortgage rates have actually declined since the Fed’s last rate announcement in early November.

The Fed periodically raises and lowers the Fed Funds rate in order to either speed or slow the pace of the overall economy. With inflation continuing to remain above the Fed’s stated goal, they are trying to slow down the economy and bring inflation under control. The Fed’s dual goals are to increase employment rates across the economy, and to maintain low inflation. Today’s action is an effort to get inflation back in line.

The good news is that the pace of inflation has been slowing in recent months. The Fed recognizes this; accordingly today they were able to raise rates by the lowest amount since June, a sign that they are beginning to see results in their fight against inflation. That’s good news for all of us: lower inflation means our dollars go farther every month!

Tracking what the Federal Reserve’s actions might mean for your homebuying decision can be challenging. If you’re thinking about purchasing a home, contact the professionals at First Home Mortgage today to help stay informed!

Related Posts

Introducing First Home Advantage
Introducing First Home Advantage

We’re excited to announce the launch of our new First Home Advantage program! We couldn’t be more excited about this chance to provide exceptional service to first-time homebuyers — this new program is an opportunity to level the playing field for those who may have been overlooked in the past due to issues with their […]

November 10, 2022
Full Post
What Today’s Announcement from the Federal Reserve Means for You
What Today’s Announcement from the Federal Reserve Means for You

The Federal Reserve remains dedicated to reducing inflation. With inflation remaining higher than we’d all prefer, the Fed just increased rates by another .75% — but what does that mean for you? The Federal Reserve’s goal is to maximize employment and promote price stability in the economy. When unemployment rates are low and inflation is […]

November 02, 2022
Full Post
Don’t let the ghouls in through leaking windows this Halloween.
Don’t let the ghouls in through leaking windows this Halloween.

Are you looking to get your windows fixed or replaced before the winter? Before you do, let’s look behind the curtain and understand what type of sales tricks window salespeople will use.   The company charges a higher price, ensuring you are overwhelmed by the initial quote.    This can be a common trend across many different […]

October 31, 2022
Full Post

Connect With Us