The Fed is widely expected to raise interest rates Wednesday.
But what if that’s exactly the WRONG move? 👀
Some economists are warning that much of the latest inflation surge is being driven by ENERGY, something the Federal Reserve cannot fix by raising interest rates.
Higher rates won’t produce more oil. 🛢️
But they CAN make credit cards, auto loans, business borrowing and housing more expensive.
And here’s the part homebuyers need to understand:
🏠 A Fed rate hike does NOT automatically mean higher mortgage rates.
I’ll be watching the 10-year Treasury and Kevin Warsh’s comments after the announcement.
The bond market’s reaction could matter far more for mortgage rates than the quarter-point hike itself.
Do you think the Fed should HIKE or HOLD?
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Russell McDonald | NMLS 290837 | Broker CA DRE 01150730
Wymac Capital Inc | NMLS 18766 | Broker CA DRE 01121628
Real Estate Broker – CA Dept of Real Estate