What a Fed rate Hike Means For You and Home Prices
Posted by Cary W Porter on
The Fed hiked its key rate by 25 basis points to a range between 0.50% and 0.75% at Wednesday's meeting. That increase is likely to have an effect on mortgage rates going forward. To that end, The Cascade Team has calculated how the rate hike this week would affect mortgage payments with rates moving up from a 4.0% rate to one with a 4.25% rate. (Please note that the payments are based on borrowers with a minimum 720 credit score and 20% down. Payments also do not include property taxes or any HOA fees or assessments).
One rate hike won't change the world but the process of rising rates affects millions of Americans. If you have a credit card or savings account, invest in stocks or bonds, want to buy a home or a car, pay attention.
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