Interest Rates and Your Timeline; Not a Headline
Here's the deal: Yes, interest rates are now at their highest since January 2025. Hard truth, but it's important we remember the Fed doesn't directly dictate the movement of interest rates on credit cards, loans, and...mortgages. It's the bond market and its movement that drive rates on home loans. And the anticipation of this recent move by the Fed to raise the Fed Funds Rate by 0.25% was mostly accounted for before the announcement. It was widely expected, and when the Fed announced the hike, the bond market agreed it was the right call and didn't overreact.
Then, our new Fed Chair, Kevin Warsh, held his press conference and his statements gave the feeling we could see more rate hikes, not cuts, in the coming months. Why? Inflation is still being difficult and it'll probably be a slow trudge towards lower rates. This we've known for some time. In the bigger picture, it's is good for the long-term health of the market, but it's getting to the finish line that's the struggle.
Some perspective: WSJ reported this month the number of open mortgages below 3% decreased from 15 million in 2021 to just under 12 million as of June. We're seeing this at Helen Adams Realty and across the broader Queen City market; clients giving up the "golden handcuffs" and moving on with their lives, rather than postponing marriage, babies, retirement, investing, etc., on an unknowable timeline for when rates will fall.
To get in touch, reach out to your Helen Adams Realty agent or contact Tom Baker or Jordan Ivey directly.
About IntroLend Carolinas
IntroLend Carolinas is a mortgage marketplace that allows you to compare your options side-by-side, giving you the confidence to know you are receiving the best possible rate and terms. Helen Adams Realty has dedicated finance managers in their offices who have been in the mortgage and customer service industries for decades and understand how to take great care of any borrower in any scenario.