All About Rates
Most likely you read the news that the Federal Reserve raised their discount rate by 0.25% this week.
You may not have read the news that average 30-year mortgage rates went down this week.
What gives?! How could this be?!
What you need to know is that 30-year mortgage rates are not directly tied to the Federal Funds rate. Mortgage rates follow the 10-year treasury rate
You also need to know that rates today are essentially half of thier long-term avereage.
The average rate on a 30-year loan today is 3.91%. The 40-year long term average is a little above 7%.
Even though rates are higher than one year ago, they are incredibly low when looking at the long term.
We frequently are asked “when do you think rates will go up?” We made a short video which shows you our answer.
To watch the video, click HERE