August 4th, 2017
By James D. York, P.A.
Earlier this month, the Federal Reserve announced that further interest rate hikes are on the way, likely one more this fall and three in 2018. The announcement usually comes the same day the Fed’s semi-annual report is given to Congress, to be presented by Chair Janet Yellen. This year, they released the report early to give lawmakers more time to review the contents before Yellen’s testimony.
Reasons cited for the hikes included rebounding consumer spending, job and wage gains, an upswing in drilling and mining activity, and “favorable consumer sentiment,” according to the report. The strengthening economy appears to be the main factor, with over 222,000 jobs added in the U.S. in June. That’s the most in four months—and a huge difference since the summer of 2008, which saw the start of the worst financial crisis in 70 years.
Interest rates have already gone up three times since December 2016, with the benchmark rate now at between 1% and 1.25%. And we all know that when the benchmark goes up, mortgage rate increases won’t be far behind.
This is just something you might want to consider if buying and/or selling are in your future plans. I recommend you do the math and see how much it would save you over the term of a mortgage. Give us a call with any questions or if we can help in any way.
Connect With York Real Estate Group
York Real Estate Group consists of James, Michael, and Morgan York, Florida Realtors with Downing-Frye Realty. James York is the winner of the prestigious 2014 and 2015 SWFL People’s Choice Realtor Award. The group has over 25 years combined experience and over $275 million in sales transactions. Visit The York Group website at www.naplesyorkrealestate.com for all current MLS listings of houses for sale in Naples, Marco, Bonita, and Estero. If you have other questions, the Yorks invite you to email or call them at JYorkinFL@cs.com or 239-273-6727.