Mortgage Update: April 6
We're Finally Seeing an Economic Impact from The Fed's Adjustments
Back when inflation started to become a real problem (more than just transitory), The Fed started raising rates. There are two reasons why they started to raise rates:
To slow the hot economy and slow down spending
To slow down job growth
By slowing down job growth, that of course, reduces spending, which then reduces inflation.
It looks like we've finally gotten to the point where we're starting to see the impact on the economy from the rising short-term rising rates. Jobless claims were more than what was expected. The jobs report will be released tomorrow on April 7th and the forecast is that there will be fewer jobs than expected.
Although that's not really good news, it is good news from the standpoint of long-term rates. We should start to see inflation take larger leaps downward toward the target rate. All of this is being built into the market for the bond market, which is helping lower interest rates.
We're starting to see interest rates on 30-year fixed rates in the high 5%, low 6% range (depending on various factors). So, this is great news for buyers and sellers. If you want to know more or get pre-approved, please contact us. We'd love to talk and help you out.
Please email mortgages@johnadamsmortgage.com.