Real Estate Finance Alerts

FED Chairman Ben Bernanke indicated in several recent speeches that inflation risks now outweigh the risks of a weak economy. 

The markets reacted swiftly and futures now indicate about 50% odds the FED will HIKE rates by 25 basis points at the August 5th FOMC meeting; see the probabilities chart here.   

The futures markets indicate the FED will hike rates nearly 75 basis points by the end of 2008!  A week and a half ago the markets indicated the FED would not raise rates 75 basis points until the end of the first quarter 2009.

All rates are moving higher and will likely continue to do so.  If you plan to refinance or if you are on an ARM, you should act now.  If you are buying a house or plan to do so soon, you need to lock your rate as soon as possible.  Feel free to call or email for a free, no obligation review of your situation.