Don’t read this if you want mortgage rates to drop!
Everybody’s cruise to takeoff and two point landing. I wish I had better news for this mortgage rate update for Friday, November 4th. As you probably know, Fed Chairman Powell raised rates three quarters of a percent on Wednesday. He’s trying to tame inflation. Now, remember, that’s not a direct impact on mortgage rates. It’s an indirect impact. And I’ll talk about that in a second.
What does that impact today? Credit cards. Home equity lines of credit and bank borrowing rates. Well, how does it have an indirect impact on mortgages? Well, after they raise rates, then Powell said, I’m going to keep raising rates until we can get inflation in line. Well, Wall Street didn’t like it. And when we have higher inflation, we have higher mortgage rates.
So we saw mortgage rates climb a little bit more. Where’s the light at the end of the tunnel? We don’t know. We got to see what’s going to happen if he can actually tame inflation. I will tell you one thing. I’ve seen rate quotes with eight and 9% mortgage rates in front of them. Unless you have terrible credit, foreclosures and bankruptcies or don’t have a job, that rate is just not accurate.
Mortgage rates are not that high. If you have any questions about a rates specific for you or a client for purchase or refinance, reach out to me any time. I hope to have better news on these next few updates. Thanks.
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