What Happens If The Fed Raises Rates?

What Happens If The Fed Raises Rates?

If the Fed raises rates a quarter point, that does not directly correlate to a quarter-point increase in mortgage rates. The average rate on the 30-year fixed loosely follows the direction of the yield on the 10-year Treasury bond. If rates did move a quarter-point higher, they would still be lower than they were in 2013, when the Federal Reserve first announced it would start to “taper” its investment in mortgage-backed bonds.

House for sale

Siri Stafford | Getty Images

Nearly two-thirds of the consumers polled said the maximum price they would pay for their first or next home was $250,000. With 20 percent down, the rate increase could mean some buyers would qualify for less on a mortgage, but it would not turn those buyers away.

9/17/15 excerpt from post on cnbc.com titled “Do homebuyers really care about rising rates?”  Edited by Diana Olick |

Free Mortgage Plan

David Hughson

Mortgage Planner


No Comments

Sorry, the comment form is closed at this time.