The Federal Reserve did not change the Fed Fund Rate during their June Meeting today

Big news this week!.. The scheduled fed meeting today.

The Fed is in a tough spot - the economy stinks, housing is struggling, confidence is low and costs are rising. You need only look at your last receipt from the grocery store or gas station to see how quickly things have changed. And a walk through your local shopping mall tells another story of individuals who are less able to spend. That is the Fed's problem.. The smart move is to clearly hike the rates. Inflation is rapidly eating away the value of money.

As expected, the Fed decided to hold the Fed funds rate at 2% at their meeting today. They then tried to walk a tightrope by making a policy statement that was balanced between economic growth and inflation.

The Fed talk a good game by making tough comments about inflation but to date hasn't played one when it comes to taking action to fight against rising inflation.

For the most part at the end of the day rate pretty much remained the same although there was somewhat of a roller coaster due to activity in the bond market.

Today's interest rates if you were to buy a home with 20% down are around 6.375% and if you are looking for an investment property for the same scenario you're looking around 7%. Of course as always, give us a call to discuss you specific situation. These rates are merely a ball park figure.

It really is a great time to buy real estate! Property is pennies on the dollar compared to the last several years and interest rates have no other way to go but up.

This blog written by:
Team Newington
Sacramento Mortgage Planner
(916) 687-6868
www.SuperiorLoanTeam.com