Bob Garagliano, Realtor

11/13/2024

So sad

05/07/2022

Waiting may cost you more.

03/28/2022

Retire the old meme

03/02/2022

This is true.

01/26/2022

Courtesy of Steve Schraderbachar, Mortgage Planner

March Rate Hike Imminent

As expected, the Federal Reserve Open Markets Committee left rates unchanged at near zero on Wednesday, but don’t expect the Fed to hold rates at these historically low levels for much longer.

The Fed is facing mounting pressure to increase borrowing rates as consumers toil with skyrocketing inflation. According to the Fed’s statement, "with inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate”, the Fed’s statement read.

Many market participants took that to mean the possibility of a .50% increase, rather than a .25% one, was now on the table for rate liftoff in March.

The anticipated rate hike in March would be the first in over three years. The Fed lowered rates in early-2020 to provide emergency stimulus to the economy, shocked by the breakout of the COVID-19 pandemic.

Additionally, the Fed began purchasing US Treasuries and mortgage-backed securities in an effort to drive down borrowing rates, provide liquidity, and stimulate the economy. The asset purchase program is expected to end in March, just in time for the first rate hike.

With a “strong labor market” and consumer prices growing at 7% annually, the Fed must now pivot to a new strategy: controlling inflation.

Historically, low rates pose the risk that the economy may be overheating as consumer prices outpace wage growth. Runaway inflation rates have already caused the Fed to speed up its timeline for winding down stimulus and hiking interest rates.

Now, a 50bps rate hike in March seems more likely, causing the Fed to forfeit the prospects of a “soft landing”.

To be sure, the recent spike of volatility in the financial markets reflect the need for urgency with respect to the Fed’s monetary policy.

The S&P 500, led by the tech sector, has traded off nearly 14% since the beginning of the year as investors continue to worry about the removal of emergency Fed stimulus.

Interest rates, in anticipation of Fed rate hikes and the end of asset purchases, have move much higher as well. 10yr Treasury yields and 30yr mortgage rates are each about 40bps higher year-to-date.

01/24/2022

Mortgage rates are going up! 🛗 🆙 🔝

Whenever mortgage rates have risen over the past 50 years, housing prices also continued to rise.

If you've been on the fence about buying vs. waiting, history tells us it will cost you more $$ to wait.

The next 2 years will be volatile in the financial markets.

You might as well have a nice house to live in to ride out the storm.

Send me a message if you're thinking about buying a new home anytime this year.

Thanks to Steve Steve Schraderbachar, Mortgage Planner

12/07/2021

THIS is real estate!

11/10/2021

What's happening in Burke.
https://mce.cbprospectsquare.com/mce/prj/cwb/history/pip1/20211110/pip_59588_3944062_122406.htm

09/15/2021

How was real estate in September? Glad you asked.

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