Hello and Happy March!
“The interest rate market has been through 2 major cyclical changes since our last post. Rates went through a nice decline in January, but proceeded to increase back to the high point of last year in Feb based on hotter than expected inflation reports and a robust job market. All eyes are on the Fed this week as Chairman Powell speaks to Congress and the release of a Feb jobs report due out Friday. The markets have already baked in a .25-.5 rate increase at the March meeting. The question now is how many more .25-.5 point increases to come or will they just keep rates higher for longer. The inflation numbers need to turn and turn substantially for us to exit this hawkish Fed stance on rates.
While we wait it’s important to realize that while you can always lower your loan costs with a refinance later when rates come done you can NEVER refinance your build costs and build costs will never be lower than they are today. Lock in sooner rather than later!”