Federal Reserve chair recently hinted that rates may rise sometime this year. What might that mean to the Santa Clarita real estate market?
With exception of a minor hiccup in hiring last month due to unseasonably cold weather in other parts of the country, our national economic condition has seen much improvement since the dark days of the so-called “Great Recession” that reared its ugly head in 2008.
“But what does this have to do with mortgage interest rates?”, you may ask.
Interestingly enough, it all ties in together. Banks and mortgage lenders borrow money from the Federal Reserve who sets a “wholesale” base borrowing rate for lending institutions. From there, consumers are charged a “retail” rate that is usually a few points above (Based on credit rating, etc.).