Why are mortgage rates climbing
It’s Thursday, September 21st. It’s been a tough go for rates this week. And let me tell you what happened. Fed Chairman Powell said he’s basically going to put his foot on the gas. It’s going to continue to raise short term interest rates at higher than expected amounts because he’s got to get inflation tamed.
He doesn’t really care about the recession right now. That’s a different challenge this will deal with at a different time right now. He’s got to get inflation in line so that more consumers are not feeling the pinch of high gas prices, high grocery costs, all of the things. It’s absolutely have an impact on mortgage rates, not as substantial as you would think, but interest rates are up about a quarter of a percent.
The good news is that there’s a little more inventory for homes to buy. So if you’re looking to buy a home, you can typically negotiate a little bit better price. Ideally, instead of asking the seller to reduce the sales price, you ask the seller to give you a credit to buy yourself a lower interest rate to make the monthly payment more affordable.
Reach out if you have any questions.
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