economy Archives - Catalyst Mortgage

How the fed rate cut affects mortgage rates

This past Wednesday, the Federal Reserve Bank reduced the Fed funds rate by .5%, bringing it’s target rate to 4.75-5% from the previous 5.25-5.5% range. But what does the Fed rate cut mean? To the vast majority of people not dealing directly with the Fed? It’s important to understand what the Fed funds rate actually…

The Fed announced today an interest rate hike of .25 to the Fed funds rate. This brings the Fed funds rate to 5.5%, the highest level in 22 years, as the Fed continues to fight against stubbornly sticky inflation. In commentary following the hike, Fed officials noted they’ll watch inflation and monitor the overall marketplace…

Is It a Good Time to Buy a House? This question is one of the most common questions we see from consumers, investors, real estate agents, and many others with interest in the real estate market. The answer is ‘yes’. But it also depends on your specific situation, what’s important to you, and where…

As Q3 winds down for 2022, I wanted to provide some insights into where the housing and mortgage markets are, and what’s likely to occur going forward. If Q2 was to be summed up with one word, it would likely be volatility. We witnessed 2 aggressive Fed rate hikes, with opposite market reactions each time. Interest…

Is the Real Estate Market Going to Crash? 2022 has been a year of change for the United States real estate market. Coming off of a covid-infused housing frenzy, 2020 ushered in the cheapest borrowing costs the country has ever seen, with rates on 30 year fixed mortgage dropping into the 2s, and nationwide…

Will Inflation Go Down? There’s tons of economic jargon being tossed around headlines these days, and one of the hot topics out there is inflation. To start, it’s important to understand what inflation is. When the value of a currency diminishes, the result is inflation – basically, you get less for the same or more. …

Will the Fed Raise Rates? Yes, and no. On Wednesday, March 16, the Fed will take an economic action that hasn’t been seen in years when they, as expected, raise the Fed funds rate. The targeted funds rate has been set at 0-.25% for years, and next week, this is expected to change. With…