As expected, the Fed funds rate was increased by 0.5% on Wednesday, May 4. Chairman Powell also pointed out the Fed is not actively looking to increase the rate by 0.75% in the coming meetings. This announcement gave investors some temporary encouragement on the future of the economy and helped boost the stock market on Wednesday. However, the gain was lost plus more on Thursday, May 5, on market fears that inflation and supply chain interruptions will not be tamed quickly.
The 10-year treasury yield has pushed over the 3% mark, the highest since 2018. The average 30-year fixed rate is now at 5.62%. A year ago this time, the average 30-year fixed rate was at 2.96%. If you’ve received a quote for a mortgage recently—even if that day was just yesterday—it’s time to get another one. It is a great idea to make sure you are still qualified for the loan amount you were qualified for a week ago.
Refinancing is an excellent choice if you are looking to consolidate debts, especially credit card debts which always have much higher interest rates. Many homeowners have more equity at their homes now comparing with a year ago. Make your equity useful and stop paying high interest on credit cards and other debts. Contact me today for a complete analysis.
