03/23/2023
Sound and Resilient!
With 3 bank failures here in the U.S. and the organized marriage of UBS and Credit Suisse across the pond, the FOMC voted to increase rates .25% and remind us that the banking system is sound and resilient. The upper bound, as they call it, is now 5% for the Fed Funds Rate.
Here Are 3 Things to Know:
1 The commitment to fight inflation by raising the Fed Funds rate by .25% has helped push mortgage rates lower so far today.
2 The Government will not allow a banking crisis to develop further. Janet Yellen has said as much and Powell is reiterating it in his post-meeting speech. Noted in the second paragraph below, it’s possible the recent banking news will cause credit conditions to tighten and slow economic growth. Did the Fed get a helping hand in the inflation fight?
3 Yesterday we learned that Existing Home Sales surged 14.5% in February to an annualized pace of 4.58M. The drop in rates over the last week and today’s positive improvement might lay the ground work for buyers to step up even more and take advantage of the lowest rates in months.
Rate decreases are estimated next year, so jump in while the prices are low and before the next rate hike and refinance next year! Don’t get caught in the multiple offers and over asking price this summer, I don’t wanna have to say ”I told you sooo” 😆
Wendy Weber
Homes of Idaho
📱 986.666.3090
