Florida Mortgage Interest Rates Show No Signs of Slowing Down

If you’re the Federal Reserve and one of your mail goals is to keep inflation in check, what’s the best way to go about accomplishing this task? You guessed it: raise/lower interest rates accordingly.

Over the course of the last year, the Federal Reserve has increased interest rates 12 consecutive times - there is no indication that this will be changing any time soon, either. Many economists believe that short-term rates will continue to rise, probably until the Reserve takes rates them up another 1/2 to 3/4 point.

“The Fed will keep battling inflation by raising interest rates, despite high oil and gas prices. The best thing homeowners can do is to act defensively,” says Bob Walters, Chief Economist for Quicken Loans. “While short-term rates are on the rise, long-term rates remain near historic lows. Anyone who currently has an adjustable rate mortgage (ARM) and who will be in their home for more than three years should strongly consider refinancing to a fixed-rate mortgage.”

The Fed meets again on November 1 and it’s expected that they’ll raise rates another 1/4 point. If you have an ARM that is set to adjust, now may be the time to lock in your rate for the long term. Good luck.