What’s the latest in the market today?
Jobless claims are currently at a 43 year low, but the quality of available jobs is still not great. These are lower paying jobs without wage growth.
Additionally, a 3 rate hike is on the table this year from the Fed. This will increase credit card rates so it’s a great time to pay down your credit card debt. How will this rate hike affect mortgages? There will be a potential increase on 30 yr fixed rates in addition to impacting home equity line of credit or adjustable loans. Those loans may see a rate increase due to the rate hike. If you are considering buying home, a fixed rate is the safest option, while an adjustable loan can adjust on your monthly equity line or arm products. Conversely, rate hikes won’t be significant so if you have equity line or adjustable, you won’t see a huge increase over the next year. You will see it inch up little by little as the economy grows. Interest rates are still at all times lows in high 3% to low 4% range on government rates, while some are in the high 4s and low 5s.
Have a great month of February and please let us know if you need anything!