Buyer Strategy

What Happens If The Fed Raises Rates?

If the Fed raises rates a quarter point, that does not directly correlate to a quarter-point increase in mortgage rates. The average rate on the 30-year fixed loosely follows the direction of the…

HuggySeptember 28, 20151 min read

If the Fed raises rates a quarter point, that does not directly correlate to a quarter-point increase in mortgage rates. The average rate on the 30-year fixed loosely follows the direction of the yield on the 10-year Treasury bond. If rates did move a quarter-point higher, they would still be lower than they were in 2013, when the Federal Reserve first announced it would start to “taper” its investment in mortgage-backed bonds.

House for sale

Siri Stafford | Getty Images

Nearly two-thirds of the consumers polled said the maximum price they would pay for their first or next home was $250,000. With 20 percent down, the rate increase could mean some buyers would qualify for less on a mortgage, but it would not turn those buyers away.

9/17/15 excerpt from post on cnbc.com titled “Do homebuyers really care about rising rates?” Edited by Diana Olick | @DianaOlick

Free Mortgage Plan

David Hughson

Mortgage Planner

858-863-0264

Tags

#david-hughson #the-greenhouse-group

Written by

Huggy

[Insert role — verify]

Since 2007 David has been a grateful member of The GreenHouse Group where his contribution is helping people find some money when they want to buy or refinance a home. David is a native Californian who has lived all over the state but has called San Diego home now for 22 years. After spending 10 years in San Diego as a kid David spent his high school and college years up in northern California. In 1998 he graduated from Pacific Union College located in northern California with a BA in Spanish and minor in Business. He moved back to San Diego a few years later and started his career in real estate in 2003 after buying his first home. "I entered this business as a consumer. I always wanted to own a home and didn't think it was possible. After working two jobs for several years I successfully purchased my first place and unexpectedly it lit a fire in me to help others do the same. My purpose is to serve others by extending a hand and helping people get from where they are now to where they want to be”. David is currently licensed by the Department of Real Estate as a real estate broker.

What Happens If The Fed Raises Rates?

Related field notes

Unlocking the Magic: Where to Invest for Profit in California in 2024

Can a first time buyer purchase a rental property?

Is it stupid to buy right now? [Real Estate]

Ready to move on this?