« Return to Blogs

Rate Hike No Surprise for West Palm Beach House Buyers

Rate Hike No Surprise for West Palm Beach House Buyers

house buyers and sellers, Federal Reserve, Fed Funds short-term rates, Mortgage rates, Mortgage applications, West Palm Beach house, home loan rates, great real estate,West Palm Beach house buyers and sellers were not surprised in the least at last week’s Federal Reserve decision to notch up the Fed Funds short-term rates. For once, anticipating the move had been easy. The surrounding factors—the economy, employment, and consumer confidence measures—were all in unison, pointing to a meaningful improvement now underway.

Already, a day before Wednesday’s announcement, West Palm Beach readers could confirm what was coming: Mortgage applications rise 3.1% as borrowers rush to lock in rates,” per CNBC on Tuesday; “Mortgage rates jump as economy revs up,” echoed MarketWatch.

The editors at CNNMoney, well aware that the “news” was not likely to gather much attention, wisely chose a more direct appeal by promising to explain “What a Fed rate hike means for you.” The listed major impacts:

  • savings accounts will pay more (it would be hard to imagine their paying less)
  • the “Trump market rally” is unlikely to be derailed
  • Presidential plans for a major infrastructure renewal could complicate matters for Fed decision-makers in coming months
  • Big ticket buyers could still count on relatively low rates

Since West Palm Beach house buyers belong to that Big ticket group, the last point was relevant. Although it was pointed out that a rate hike “does NOT guarantee that mortgage rates are going up,” a number of outside factors pointed in that direction. So West Palm Beach house hunters might or might not expect that the immediate future could bring higher home loan rates, but the current climate was still favorable—a caption read, “rates are rising but still low.”

So far, so good. But then, to illustrate, CNNMoney offered a cartoon sketch picturing a balance scale with coins in one pan and a house in the other. The drawing was shown under a headline exhorting, “Homebuyers: Decision-making time!

That graphic was the only obtuse message in an otherwise straightforward commentary. The puzzling part was that the scale showed the cartoon coins weighing heavier than the cartoon house. The visual metaphor for decision-making time would seem to illustrate that the money was more important than the house, which seemed to mean that prudent West Palm Beach house buyers should hold onto their coins. But the article argued for the opposite. The message for Big ticket buyers was right there in the “rates are rising but still low” headline.

I think it’s fair to guess that CNNMoney’s Art Department is at odds with the Financial Prognostication Department about “What a Fed rate hike means for you.” For West Palm Beach house hunters, my takeaway would be to side more with the Finance Department. Certainly, if you are preparing to take advantage of the current crop of great real estate buys, the scales should be weighted toward nabbing the house.

For a head start—give me a call!

 

Read from source..>>

 


Questions, Comments or For more information you can contact Christian Penner at: Call/Text: (561) 316-6800 or visit us online at www.ChristianPenner.com

The Christian Penner Mortgage Team, A Branch of 
American Financial Network, Inc

CORP NMLS# 237341 ; Equal Opportunity Employer ; Equal Opportunity Lender American Financial Network, Inc. 10 Pointe Drive, Suite 330, Brea, CA 92821.

Call/Text: (561) 316-6800


Or You can click "Call Me" below to call Christian Penner directly using Google Voice


blackwhite#ChristianPenner, #MortgageBrokerWestPalmBeach talks about #RealEstateWestPalmBeach. He also serves other Local Areas and provides home #MortgageSolutionsforPalmBeachGardens, #Jupiter, #BocaRaton, #Wellington and #Tequesta. #ChristianPennerMortgageBrokerJupiter has the #lowestmortgagerates and the best #homemortgage programs like; #Jumboloans, #FHAHomeLoans, #VAHomeLoans, #ReverseMortgageHomeLoans, #FreddieMacHomeLoans, #FannieMaeHomeLoans and #HARPMortgageLoans. #ChristianPennerMortgageBrokerPalmBeachGardens has Served the area for over 15 years with his #HomeLoanLending Needs and Works with #TheChristianPennerMortgageTeam.
#AskMeAboutAMortgage #PalmBeachMortgageLender #WestPalmBeachMortgageLender #PalmBeachGardensMortgageLender
You Can Also Find Him On
fb mortgageFacebook at: https://web.facebook.com/YourMortgageBanker/

- - -

Christian Penner
712 U.S. Highway 1 North #300, North Palm Beach, FL 33408

Call/Text: (561) 316-6800