Fed Minutes Released and Rates Going Up in December
Fed Gives Fair Warning
Minutes from the latest Fed meeting were released on Wednesday and the Feds are not pulling any punches in regards to their next move. The Fed plan is to raise rates in December which will have an impact on the credit market and mortgage interest rates.
Typically, the Federal Reserve moves rates up to temper inflation, but inflation has remained tame. The Fed is taking the position that a medium term outlook warrants this increase in rates. More information regarding this outlook can be found in this article (click here.)
Borrowers that are refinancing before rates rise are taking advantage of low refinance rates before the inevitable happens. Many industry analysts have been encouraging homeowners to act and not lose the chance at refinancing for cash out or other needs.