• Erin McGinnis

Interest Rates: What Does the Fed's Action Mean for You? Spring 2018

There's a lot of talk about interest rates going up. Here's an update from mortgage banker Blayney White with Peoples Home Equity here in Marin County...

"I know you’ve seen a lot in news about the Fed raising rates, and yes it is true they are raising rates. We’ve already seen a quarter of a point interest rate hike in the overnight lending and in prime. Additionally, we expect to see another half a point interest rate hike.

However, despite that, there are other economic forces right now that are driving interest rates into a rally. That's good for borrowers because a rally means rates are decreasing at this moment. A rate rally happens when there are jitters in other parts of the market, and people start putting lots of money in bonds. The demand for bonds drives lower rates.

It’s actually a great time to get pre-approved for a home loan, you can even pre-lock an interest rate before getting into contract. If you haven’t been pre-approved and you’d like my assistance, please call me at 415-891-0004."

Outside reading:

Bigger Deficits Yield Higher Interest Rates

Fed raises rates, keeps forecast for 3 hikes in 2018