Fed raises short term rates but long term rates stay steady!

The Federal Reserve raised short term interest rates again today…another .75% of a point.  Although this usually puts pressure on long term rates (30 year fixed, etc) those rates basically stayed the same today as they change when the 10 yr treasury bond changes.  In a nutshell, if bonds are purchased by big investors, then long term rates usually fall.  If bonds are sold by these same investors, long term rates will rise.  As of today, a no point 30 year fixed rate up to $715,000.00 would be in the low 6’s for an interest rate at no points.  We will see what the future brings.  In the meantime, people still need to buy, sell and refinance real estate, so give Michael Mitchell a call at 530-406-2200, 707-259-1117 or 707-337-5970 Cell, to discuss what financing path will work best for your current needs!