Fed Increases Benchmark Rate at December Meeting
The Federal Reserve
approved the third interest rate hike in 2017. The central bank raised rates
five times since late 2015.
The quarter point increase
will boost the benchmark rate that impacts everything from mortgages to
revolving debt, although the effect on mortgage seeking
consumers is far more gradual.
“Homebuyers and homeowners
seeking fixed rate mortgages are still in a great position,” states Mike Dulla,
president of United Home Loans. “Of course, if you’re in an adjustable rate mortgage,
it’s better to refinance to a fixed rate sooner rather than later.”
Experts predict three
quarter point increase in 2018. What month that will occur is unknown, but the
rate bumps are confirmation that our economy is in a good place.
Even with the increase, rates
are historically low. It’s still an ideal time to buy a home and lock in a
great mortgage rate. For a custom quote, contact us here
or at 708.531.8388.