Real Estate is DEFINITELY a team sport…
Having knowledgeable teammates help with each facet of any real estate transaction is critical to its success.
Austin Lampson of OnQ Financial is someone who really knows her stuff, and we are honored to feature her in this Guest Spotlight and offer her considerable knowledge to interpret the Fed’s recent statement, and get to the core of what it really means.
“Three major differences in the Fed’s Statement………..
The Fed, as expected, did increase the target range for the federal fund rates to 1%. And yet, the first reaction in the Bond Market (which indicates where long term rates, such as mortgages, are headed), is for a drop. Why? Well, it comes back to the idea that the economy is improving but not as quickly or as strongly as believed.
Here are three major differences in the Fed’s Statement
The Committee expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will stabilize around 2 percent over the medium term.
Job gains remained solid and the unemployment rate was little changed in recent months.
Inflation has increased in recent quarters, moving close to the Committee’s 2 percent longer-run objective; excluding energy and food prices, inflation was little changed and continued to run somewhat below 2 percent.
What that means in real life:
- The economy is stabilizing not rising.
- The unemployment rate is not changing over months– not just “recently.”
- Inflation has increased, and is moving close to where they want long-term numbers.
So whereas much of what we heard from the Fed seemed to be speculative of our economy, it seems there is now a clear path forward. Clarity means stability. And stability means less of a rollercoaster for rates, and your mortgage.”
Sr. Mortgage Consultant, NMLS #517060 / CA DBO #517060
On Q Financial NMLS #5645