Yesterday, November 2, 2022, The Federal Reserve announced three-quarters of a percent rate hike to tame inflation. The target range of 3.75%-4%, is now the highest target we’ve had since January 2008. The fed did mention in their statement concerning future hikes, “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
This has led to the belief in smaller hikes in the new year, which would be good for mortgage rates. However, as we, and the Fed, have said there is a lag time when it comes to the market reacting to the short-term lending hikes.
We’ll update you on how the market reacts further to this hike.
If you have any questions about strategizing whether to buy now or later, please feel free to reach out to our team of Real Estate Advisors. We can help you make the wisest decision for you!
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