Yup. Interest Rates are Up. Then Why am I Still Seeing Rainbows and Unicorns?


Dianne has always suggested that I'm an optimist and it's true, I suppose. I tend to lean toward the bright side of things and seek opportunity in the rain showers while others are grabbing umbrellas and ducking for cover.


Yes, interest rates have risen and are likely to continue to inch upward. But what does that REALLY mean to you? Or to me for that matter? It depends on your circumstances--and your mindset!


My trusted colleague, Carolyn Thomas of Cherry Creek Mortgage, provides the following thoughts about the interest rates and the opportunities--yes, I said opportunities--that it may provide for folks who aren't searching the closet for an umbrella:


The Fed announced that the target range for the Federal Funds Rate is rising by 0.75%. Though rates are increasing, they are still historically low. Compared to the last 20 years, current rates are competitive.


How does a Fed rate increase impact the economy?

  • In an effort to limit inflation, the Fed raises rates.

  • Though a higher rate can make borrowing money more costly, it can also increase returns on certificates of deposit and savings accounts. It can also drive a stronger U.S. dollar.

What does this increase mean for homeowners? What about buyers?

Though mortgage rates have steadily risen over the last few months, it can still be a good time to think about:

  • Financing home renovations

  • Buying a new home

  • Leveraging home equity to fund educational expenses

  • Refinancing to eliminate mortgage insurance

  • Consolidating debt*

  • Since credit card interest rates are also increasing, this could be a good time to consolidate your debt into one affordable payment, thus skirting the more than 20% you may be paying with your credit card.

Mortgage rates and the housing market are dynamic right now, so please know that I am always happy to assist with:

  • Assisting with Pre-Approvals and FasTrac underwriting approvals

  • Selecting the right program for a home buyer or home owner's needs

  • Setting home financing goals

  • Reviewing how different mortgage programs can impact a budget

Contact Carolyn to learn more about how to leverage the current situation in your favor. She's very responsive and incredibly knowledgeable! cthomas@ccmclending.com or call

(925) 337-0560.


And if you're looking for me, I'm out searching for rainbows and unicorns. I mean, kind of. As always, if you have questions, please give me a call anytime. 925.360.3261.


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