An increase in the Federal Reserve’s benchmark rate is likely to increase rates for all sorts of loans, particularly mortgages, The Washington Post reports.
Rates have already crept higher in anticipation of the Fed’s rate hike, and according to the Post, both buyers and sellers are being forced to reevaluate their budgets and behaviors.
“Average rates on 30-year fixed-rate mortgages have climbed in recent weeks by about a quarter-percentage point, from 3.75 percent to almost 4 percent — about a $600-a-year difference on a $350,000 mortgage,” write reporters Jonelle Marte and Ylan Q. Mui.
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