3 mortgage moves to make before the June Fed meeting
Summary
Mortgage interest rates have recently increased after falling earlier this year, partly due to higher inflation and strong job numbers. With the Federal Reserve meeting scheduled for mid-June, borrowers are advised to review their budgets, compare mortgage offers, and consider locking in a rate to protect against possible future increases.Key Facts
- Mortgage rates dropped below 6% earlier this year but rose to about 6.62% by late May.
- Inflation has increased to its highest level since 2023, reducing chances for the Fed to cut rates soon.
- The Federal Reserve will meet on June 16-17 to discuss interest rates and economic conditions.
- Strong employment and higher inflation may lead the Fed to raise interest rates.
- Borrowers should recheck their budgets because mortgage affordability has changed.
- Shopping around for mortgage rates is important now, as lenders react differently to the economic situation.
- Locking in a mortgage rate can protect borrowers if rates rise after the Fed meeting.
- Most lenders allow borrowers to lower their locked rate if rates drop before closing.
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