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

Is the Housing Market Correcting? A Real Estate Pro’s View

Is the Housing Market Correcting? The real estate market is shifting, and when that happens, it can be hard to separate fact from fiction.

Comparing Concierge Real Estate Companies like Sunny & Associates vs. the Large Real Estate Companies

If you’re looking to buy or sell a property, you may be wondering whether to go with a large real estate company or a concierge real estate company like Sunny & Associates.

Why WalletHub ranks Florida Supreme as the #1 Retirement Destination for 2024

According to a recent study by WalletHub, Florida has clinched the top spot as the ultimate retirement destination for 2024. Let’s explore…

Hottest Real Estate Market in the World may be Palm Beach, FL, Brokers Say

The average home price in Palm Beach, Florida, was more than $7 million during the third quarter, according to a report from Douglas Elliman and Miller Samuel.

Choosing A Home In South Florida? What You Need To Know

South Florida is one of the most desirable places to live in the US. With its sunny weather, beautiful beaches, and thriving cultural scene…

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.

Buyers Eyeing South Florida Should Consider Broward County for Good Returns on Investment

Offering quieter beaches and lower density than Miami and Palm Beach, Broward County is more appealing than ever to Northeasterners

Top 7 Must-Do Steps Before Listing Your Florida Home for Sale

Are you contemplating selling your home in the picturesque state of Florida? We’ll guide you through 7 essential steps before listing your home.

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…

Sell Your Home Now, Don’t Wait To Be Behind The Pack, What To Do In 2022

2021 has been a year like no other for homeowners. Homeowners are realizing the benefits of today’s sellers’ market. Record-breaking…


Top Rated Real Estate Broker

Real Estate Markets:Tallahassee, Plantation, Davie, Cooper City, Pembroke Pines, Weston, Sunrise, Fort Lauderdale, Boca Raton, Port St. Lucie and Vero Beach Florida.