The Federal Reserve has released information that that are planning on raising rates at least 3 more times this year.  They have already raised the rates 1 time earlier this year.  What does this mean raising rates? The Federal Reserves is the one who creates the policy on the economy by setting interest rates that the government loans money to banks at overnight rights.  So when they raise or lower the rates by .25% this will affect your borrowing cost with credit cards, home, equity lines of credit, auto loans, person lines of credit and mortgage rates typically.  The overnight lending rate that the Federal Reserve currently lends to banks is 1.60% as of April 30, 2018.  Prime Rate which is the figure that the banks start at to lend the public money is currently 4.75%.  When ever the Federal Reserve raises of lowers the Overnight lending rate.  This generally affects the Prime rate the same percentage wise.  So with an increase the public will have less buying power.  The Federal Reserve raises rates to stave off inflation.

If you are concerned more on what mortgage rates will do follow the 10 Year Bond.  The yield as of April 30, 2018 is 2.94%.   This is the rate that will affect your mortgage rates more than the Fed Rate or Overnight lending Rate.  When the 10 Year Bond Yield goes up, rates go up,  when it goes down rates go down.

If you would like more information please contact Bruce Singer with Vision Home Mortgage at 702-217-5525 or click the link on this page.