As I expected, last Wednesday the Federal Reserve raised the short-term interest rate up 25 basis points. Overall, the markets responded favorably as Fed Chair Janet Yellen voiced confidence in the economy with both stocks and the bond market moving in positive directions. This is noteworthy as typically when rates go up, we will see a sell-off in the bond market. This means that the bond market already adjusted for the increase and that they believe there could potentially be less than the originally indicated 3-4 rates increases. If the economy continues along this trajectory, I expect to see at least two more rate hikes during this year as the Fed will seek to mitigate potential inflation.
Pull Equity while Rates Low, Values High
For those thinking about paying for college, buying an investment property or would just like to have a larger cash reserve—this is a great time to pull out equity from your home. With an equity cash-out loan, you can take the equity you have already gained while the rates are still historically low. With present home values, there’s never been a better time to take advantage. Call me today to learn more!
Geoffrey Davis – Mortgage Loan Consultant
First United Bank & Trust
6401 S. Custer Rd.
McKinney, TX 75070