15 Sep Today’s interest rate update

Today’s interest rate update

Today the August inflation rates came out. Wall Street was expecting a reduction of one percent over the previous month, but we had an increase in inflation. The stock market responded with a 1,276-point loss and interest rates went up.

Energy costs went down this last month but the increase in inflation was caused by increases in rents, medical costs, and food.

As the results of this unfavorable news the Federal Reserve is expected to raise rates another .75 to a full percentage point next month at their next meeting. This will impact mortgage rates.

Where do I see rates going? I predicted this spring rates would hit 6.5% and I think that is spot on.

Look for lenders to get more creative with Buydowns and Arms. These will give buyers more options and provide time to refinance when rates go back down after inflation subsides.

earnest money can make the offer look stronger and give the seller peace of mind.

I hope you found my blog on “Today’s interest rate update” helpful. Look for more blogs on all aspects of Minnesota, real estate, and the world around us.

Just call, text, or email me with questions.

Jeff Anderson

The Anderson Team

www.mnrealestate.com

RE/MAX RESULTS

612-386-8600