Will The Federal Reserve Raise Interest Rates?

Rates have remained low for the past several years, but when should they be raised? And just what IS the Federal Reserve, anyway?

We talk a lot about interest rates, and for obvious reasons. Unless you are paying cash for a home, then they play prominently in just how much home

Fderal Reserve Chair Janet Yellen
Fderal Reserve Chair Janet Yellen

you can afford.

Yes, rates have risen and fallen over the past few years, and today we’re not talking about interest as it pertains to the value of loans that are bought and sold on the stock market (Which can also affect rates); we’re instead talking about the Federal Reserve.

What is the Federal Reserve?

Established in 1913, the Federal Reserve acts as the nation’s bank. They set financial policies and terms that banks and lending institutions follow, and also loan money to those banks at a base interest rate that is below what the consumer would pay. The following video provides a brief and easy to understand explanation of how the Federal Reserve works.

Will interest rates go up?

Good question. Federal Reserve Chair Janet Yellen has more than hinted that it’s possible rates could rise sometime this year. If the Fed does raise the base interest rate, it will definitely affect a buyer’s loan limit or their mortgage payment amount. The best thing to do if you’re on the fence about buying a home is to lock in your rate now.

We are your choice for buying and selling real estate!

Team Avalos Real Estate is dedicated to helping you achieve all of your real estate goals, and our goal is to make sure your experience is positive and achieves the best results whether you’re buying or selling a home in the Santa Clarita or San Fernando Valley areas. Contact us today for a no obligation consultation.

Team Avalos Real Estate
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355

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