Yesterday I told you the Federal Reserve had raised short term interest rates, but long term rates (mostly affected by treasury bonds) had remained little changed. Well, they caught up today! In most cases rates went up anywhere from 1/8th to 1/4 of a point. That still keeps them in the low 6’s, but not as comfortable as yesterday. Seems the Fed not only spooked the stock market, but the bond market too. The fed’s stated goal is to reign in inflation, so buckle up everybody…they are dedicated. It probably makes sense to start considering 7 year fixed and 10 year fixed (both amortized over 30 years) to keep payments down. If you have questions about that or want scenarios run, give Michael Mitchell a call at 530-406-2200, 707-259-1117 or 707-337-5970 cell!
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