FeD increases RateS, yet Rates are still Low

     So a few clients have mentioned this to me recently, concerned over what will happen to mortgage rates and if they  "missed" the chance to lock in a low rate. Simply put, no.  Weeks after the hike, mortgage rates are still incredibly low and holding stable. Especially low when compared to the historic pre 2006-7 rates of around 6%+. One thing people seem to be misunderstanding is that the Fed does not directly control mortgage lending rates. They set the rate for lending to other banks and institutions which in turn has some, but not direct impact on the rates that lenders can give to home buyers. Right now, the federal rate is at 1.0 to 1.25% (wouldn't we all like to receive such a rate!) after receiving the 0.25 adjustment. As any competent lender can tell you, the current mortgage rate for homebuyers is around 3.75-4.0% depending on the buyer and the type and length of the loan. Mortgage rates are being protected by low world wide rates which is thankfully outside the control of the fed. While the fed is planning on raising rates again this year, everyone expects it to happen later this September. So homebuyers and prospective homebuyers have a few more months of breathing room as long as they get in contact with a real estate agent and submit offers sooner than later.