The Fed hiked interest rates again at the end of July 2023. What does this mean for you and possibly buying a new Baltimore home and getting a mortgage?

Hopefully there won’t be much effect on your potential mortgage rate.

Mortgage rates are affected by many factors. Yes, the Fed’s spike may be one of them, but a very small part. As one of the lenders I work with has said, mortgage companies generally anticipate when the Fed will raise rates, so weeks beforehand, their rates and terms usually already reflect that upcoming hike.

In general, the Federal Reserve does not directly affect mortgage rates. When interest rate hikes happen, they generally affect CD rates and savings accounts most directly, and where you may see it most is credit card interest rates. For mortgage rates, they are generally more affected by the Treasury yields. (Read more on Treasury Yields at ‘s post.) Here is more information in a CBS News article about the Federal Reserve’s affect on mortgages.

If you are interested in buying a home in Timonium, Towson, or the Baltimore Metropolitan area, please contact me. I can put you in touch with a local trusted mortgage professional who can help, along with me, guide you through your mortgage options to help you move forward!