Real Talk
THIS WEEK The Fed raised rates. Now everybody's asking about their mortgage. Big news this week. The Fed raised its rate.
It's the first time they've raised it since 2023.
So a lot of people assume home loan rates just jumped too.
The Fed rate and your mortgage rate are two different animals.
A quarter-point Fed hike doesn't mean mortgage rates rise a quarter point. Home loans follow longer-term bonds and what investors think about inflation ā not the Fed's move by itself.
In fact, much of this hike was already expected. The market had it baked in weeks ago.
Here's the part that matters for you: the headline is not your rate. Your rate depends on your file, and on which lender you land with.
š¤Æ INTERESTING FACT Here's the one that surprises almost everyone.
The Fed rate and your mortgage rate often move in OPPOSITE directions.
The Fed cuts. Mortgage rates go up. It really happens.
Back in late 2024, the Fed cut its rate three times ā a full percentage point. Mortgage rates didn't fall. They rose nearly a full point instead.
It happened again after the Fed's cut last September. The very next week, the average 30-year rate ticked UP, not down. So don't read a headline and assume you know your rate. They're not joined at the hip.
Inventory is up 17.4% from last year and homes are taking seven days longer to sell. Here is what that means if you are buying or selling in the White Mountains right now.
š” Did You Know I Can Do This? No paycheck? You can still qualify. There's a program some lenders offer that turns your retirement and investment savings ā like an IRA or 401(k) ā into "income" a lender can count, even if you're not pulling a regular check.
It's built for folks whose money lives in accounts, not in a W-2 ā retirees, self-employed people, anyone between jobs sitting on real savings. You don't have to drain the account; it's just a way to show a lender you can carry the payment.
Wondering if your accounts could help you qualify? Reply and ask, or shoot me a text ā I'll run the numbers. No pressure.
THE REAL MOVE Ignore the headline. Get YOUR number. The Fed made news this week. But the Fed doesn't set your rate.
Reading the headline and guessing your rate is a losing game. The two don't move together.
If you're hoping to buy, get your real numbers lined up now. Then you can move the day the right home shows up ā instead of guessing off a news story.
If you already own, it's still worth knowing your options ā a refinance down the road, a lower payment, or tapping equity when it makes sense.
And remember: your actual rate comes from your file and from which lender you land with ā not from a headline about the Fed.
That's my job. I'm a broker, not a bank. I shop hundreds of lenders to find the one that fits YOU ā not the one that fits them.
Curious what your home is actually worth? Free & no pressure ā your real value + equity in about 20 seconds.
Kristi Olson, MBA ā mortgage broker (NMLS #1459928) and licensed Arizona Realtor, serving the White Mountains. Equal Housing Opportunity. Nothing here is a commitment to lend. Get in touch →