Financial Update by Maurice Soussé

Interest rates are flat from last week, but, the time has come for the FED rates to rise. The writing was put on the wall this week when last months minutes were released. The committee stated that they would consider if it is appropriate to raise rates “at its next meeting”. They acknowledged that the increase in December was a “live possibility” basically saying we will see the first rate hike unless some unforeseen mishap in the economy occurs.

Does that necessarily means mortgage rates will go up? While MBS (mortgage backed securities) are not directly tied to the FED’s discount rate, it is a signal that rates will start to normalize. While many people are using the words increase, I believe that normalize is a more fair description. Mortgage rates at 4% are not a reality for any given period of time and we have had rates at these levels for several years. Needless to the say, the bell has rung!!!

Any challenges right now? Go to dinner with a close friend. Muhammad Ali said “Friendship…is not something you learn in school. But if you haven’t learned the meaning of friendship, you haven’t learned anything.”

Have a blessed weekend and let us know if we can help in any way.