Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Alert
When you are looking to by your new home or condo you are going to want to get the best mortgage rates that you can find. While you are searching for your Fort Lauderdale real estate home or condo it will be much easier if you know in advance that you are approved for a mortgage and you know that you can buy the home you desire.
I work with America’s #1 Mortgage Broker and I can assure you that Brian Brady will get you the best mortgage possible when you are ready to buy your Fort Lauderdale real estate home or condo.
Here’s what Brian has to say this week regarding the mortgage market here in the Fort Lauderdale real estate area:
Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Update
No recommendation until tomorrow. All eyes are on the Federal Reserve Open Market Committee today. At 2:15PM (EDT), 11:15 (PDT), they will release their interest rate decision and statement. The fixed income securities market believe there is a 43% chance that the Fed will RAISE rates, to stifle inflation, in August and that there is a 61% chance that the hike will come in November.
The eyes will be on the Fed’s commentary, though:
“We expect the Fed to keep the funds rate at 2% today but to shift to a more hawkish statement by placing more emphasis on inflation over growth risks,” strategists at Credit Suisse wrote in a research report. “The Fed will likely use this meeting as an opportunity to set the stage for a potential rate rise in August.”
If the Fed signals that rates could rise as early as August, expect mortgage rates to jump .25% higher, from today’s 6.375% 30 year fixed rate, over the next few weeks. If the Fed signals rate hikes are “possible” as a way to fight inflation, expect rates to stay level through in July (6.25% to 6.5%). Finally, if the Fed shifts back to its anti-recessionary talk, we could see rates drop down to 6%.
As you can see, there are a lot of “ifs”. This is why today’s Fed commentary is all important. The Fed’s ambiguity has traders convinced that higher rates are a foregone conclusion. Here’s the silver lining hidden in this dark cloud; mortgage rates are equal to what they were in July, 2007. The Fed Funds rate was at 5.25%, then. Today, the Fed funds rate is at 2.25%. What that means is that mortgage rates SHOULD be able to withstand some 5-6 rate hikes and stay under 7%.
Alas, markets are discounting mechanisms. We still think there is a lot of risk to higher mortgage rates until the commodities bubble bursts.
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