Below are the comments on the Federal Reserve’s announcement today discussing the rising mortgage rates and the continued expansion of the economy from Ruben Gonzalez, the chief economist at Keller Williams.
- “From the perspective of real estate, if the Fed’s policy move has its intended consequence of boosting inflation and maintaining the expansion of the economy, we should actually expect to see mortgage rates increase.”
- “Mortgages rates track 10-year Treasury rates fairly closely, in contrast to the shorter term rates the policy change will push down.”
- “Increasing inflation and growth expectations will likely result in upward pressure on 10-year Treasury yields after months of declines. Mortgage rates remain low by historical standards but affordability remains a challenge, especially for first-time home buyers in coastal markets.”
- “Rising mortgage rates could put a damper on an already slowing housing market, but the continued expansion of the economy and incomes are going to be the real drivers of the market.”
What do you think about the latest Fed decision - right or wrong move by Jay Powell? Let us know your thoughts in the comments section.
See below for more info on Keller Williams.
About Keller Williams
Austin, Texas-based Keller Williams, the world's largest real estate technology franchise by agent count, has more than 1,030 offices and 180,000 associates. The franchise is also No. 1 in units and sales volume in the United States.
In 2019, Fast Company named Keller Williams the No. 1 “Most Innovative Company” in real estate. In 2015, KW began its evolution into a technology company, now building the real estate platform that agents' buyers and sellers prefer.
Since 1983, the company has cultivated an agent-centric, technology-driven and education-based culture that rewards agents as stakeholders. For more information, visit kwworldwide.com.