The Fed raises their rate by 0.75%, and what happens?

That’s right, the conforming 30-year fixed rate went down this afternoon.

Chairman Powell said again that intends to cause a reset in the real estate market, but our rates really shouldn’t go up much the rest of the year because at least 1% is already built into the current rates.  If it weren’t for Powell’s threats, the 30-year fixed would be around 5.25% today (10-yr T-bill index + 1.75%).

Rob Dawg and Garry might have to wait until next year before we have a chance of seeing a 7% mortgage rate, and those of us in the higher-priced areas should keep our focus on the 30-year jumbo rate.  It will be what most financed buyers around the coast will be getting.

Pin It on Pinterest