Mortgage Rates After Fed Hikes by 0.75% (What this means for FUTURE mortgage rates)

Joseph Jennings | Broker, ABR, PPM, CAM
Tag: Mortgage Rates After Fed Hikes
Mortgage Rates After FED Hikes By 0.75% What This Means For Future Mortgage Rates
Published: Auguts 4, 2022 | | By Joe Jennings, Broker, ABR, PPM, CAM

Mortgage Rates After Fed Hikes by 0.75% (What this means for FUTURE mortgage rates)

As expected, The Federal Reserve announced a rate hike of 0.75%. But don’t think that the Federal Reserve rate hikes will move mortgage rates higher. What most people don’t realize is that the Federal Reserve does not directly hike or cut mortgage rates. The only exception for the Fed setting mortgage rates directly would be certain lines of credit that are based on the PRIME rate. This is a vast minority of the mortgage market and nothing to do with the dominant 30yr fixed loan. The Fed Funds Rate is a target set by the Federal Reserve for interest charged by big banks to lend money to each other on an overnight basis. The Federal Reserve Fund Rate pertains to loans that last 24 hours or less, the market decides what longer term loans will cost.

I spoke to Frank Lillo, Sr. Loan Originator at Pharus Home Mortgages LLC and Frank tells us that

“No one has a crystal ball, but there’s no reason to believe that the current leadership will make a hard turn to right the ship, so the balance of 2022 is more likely to be more of the same.”

I asked Frank what should Buyers, Sellers, and Investors do.

For Buyers, if a buyer can qualify to buy a house they like as their primary residence, even with the higher interest rates, it probably makes sense to do so. Compared to the high cost of renting in this market, there’s usually a financial advantage to owning. build some equity and enjoyed the “pride of ownership”.

For sellers, demand is still pretty good so those offers will still come in, just not 20% over asking price as had been the norm in the past six to eight months. And isn’t that what you would have expected in a normal market anyway?”

For investors, it’s always about the numbers, so if the numbers work ( ROI, Cap Rate, etc ), then you’ve got a workable deal. Rates go up, rents go up, it mostly washes out.”

To learn more about mortgage options or speak to Frank Lillo of Pharus Home Mortgages click here.

What’s next for mortgage rates?

With the demand for purchasing homes on the decline, high home prices, decreasing consumer confidence, and previous mortgage rate increases I believe that mortgage rates will stay steady but will have fluctuation.

To learn more about mortgages or contact a Real Estate concierge click here.

Joe Jennings Broker for Sunny & Associates Realty

Tallahassee Real Estate Experts: We Specialize in Selling, Property Management and Buying Homes

Real estate opportunities in the Metro Tallahassee area are abundant, and partnering with an experienced professional can significantly enhance your success.

A Look At Home Price Appreciation Through 2025

Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Home Price Appreciation…

Selling a Home in Today’s Market, what you need to know

Worried about the housing market cooling and home buyer demand moderating? Selling a home in Today’s Market, what you need to know.

The Future of Mortgage Rates Experts Say, Think like an Investor

If you’ve been thinking of buying a home, you may be in panic with what is happening with residential mortgage rates over the past year.

Buying vs Renting Tips & Commonly Asked Questions

Here are some questions that we at Sunny & Associates will ask you in order for you to find out if it’s time for you to finally buy a home.

Discover the Best Places to Live in Tallahassee: Your Relocation Guide

We unveil the hidden gems and thriving communities within Tallahassee, Florida. As the capital city of the Sunshine State…

Boost Your Home Sale or Purchase with Seller-Assisted Financing in Metro Tallahassee

Make your dream home more affordable with seller-assisted financing also known as a mortgage interest rate buy-down, a possible solution.

Relocating to Fort Lauderdale, Florida, Navigating the Obstacles

In this article I will focus on Fort Lauderdale, Florida, known for its stunning beaches, vibrant culture, and endless opportunities…

Buying A Home In 2022, Is It Time?

While it’s unlikely the Residential Real Estate market be as crazy as it was in 2021, you may still face some headwinds along the way.

Spring 2025 Real Estate Market Update: Opportunity Blooms in Tallahassee

Spring 2025 is bringing a breath of fresh air to the Tallahassee housing market. After years of low inventory and intense competition, we’re finally seeing a shift in the Real Estate Market towards a more balanced, opportunity-rich playing field for both buyers and sellers.

sunny-associates-best-rated-realtor-broker-plantation-fl-joe-jennings-1-b

Top Rated Real Estate Broker

Real Estate Markets:
Tallahassee, Treasure Coast, Jensen Beach, Stuart, Port St. Lucie and Vero Beach Florida.