What the Recent Rate Shifts Mean for You

Today I have John Hardimon on the line from the John Hardimon Team at Verity Mortgage to explain to us what the recent Fed rate increases mean for us.


Today, I have a special guest on the line, John Hardimon of the John Hardimon Team at Verity Mortgage. They are our preferred mortgage lender and we refer them to our all of our clients. John is here to give his expert opinion on how the Fed’s recent rate increase affects you. He has a team of three licensed loan officers and has been in the business for 19 years. According to John, the Federal Reserve has decided to raise the bank funds rate. The bank funds rate is the amount banks have to pay to borrow funds and, in turn, loan money out to us. When their rates go up, so do ours. That rate went up a quarter of a point, which isn’t huge, but it is still a move. Something else that has taken place, John says, is that the market has changed in the way that mortgage-backed securities are not as desirable because the stock market is doing really well, which makes those securities more expensive.

We have a strong market and now is a great time to take advantage of that.


We had a quarter of a point move from the market, and a quarter of a point move from the Federal Reserve, which means there’s been nearly a half point move over the past six weeks. John believes the market has been positive in responding to the new President-elect. According to John, if you have a $400,000 loan that goes up half a point, that would make a difference of about $700 per year, so if you find a good house that makes sense for you today, it’s best to buy now. The recent jump isn’t a huge deal, but it is something to be aware of. John says the bottom line is that rates have been low over the last few years and the market has been good, so you should take advantage of it. The real estate market is so strong and is getting even better. John also brought up a great question. If you are looking to buy a house, why keep paying up to $30,000 a year in rent, when you could put that toward equity in your own home, paint, have a dog, have a BBQ cookout, and have all the other great things that homeownership brings? Now is a great time to take advantage of the market. If you have any other questions for John, you can reach him at 972-820-5730 or email him at john@johnhardimon.com.

If you have any questions I can answer or you're thinking about buying or selling a home, give me a call or send me an email. I'd be happy to help!