The Fed hiked the interest rate up 1/4 of a point on Wednesday, March 22, in an attempt to continue to fight inflation.
This is the ninth interest rate hike in the past year.
The Fed did imply that the collapse of Silicon Valley Bank and Signature Bank may pause further increases in interest rates, according to a Reuters report.
What could this mean for mortgage interest rates?
Luckily, the Fed interest rate hike does not directly mean that mortgage interest rates will rise 1/4 point.
Though mortgage interest rates are still well above where they were a year ago, they have generally fallen in the past few weeks. That being said, interest rates on Home Equity Lines of Credit (or HELOCs) may rise in response to this rate increase.
Here is a very detailed piece from Bankrate, explaining why the Fed decided on a rate increase, and how it affects different facets of banks, loans, and money.
If you are considering buying a home in Baltimore, I would love to help you navigate through these changing times. I can connect you with a trusted mortgage lender about your potential mortgage and how the interest rate hike could possibly affect you as a potential homebuyer.
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