Yikes, The Feds are raising the Maui Interest rates! What does that mean to your mortgage? Today I want to talk about what’s happening with our current interest rates. This morning, I just read an article about the Fed raising the interest rates. It’s December 2021. And when we read that, people think, “Oh, my gosh. The rates are going to go up. What’s going to happen? Inflation is going up.” And one of the ways that the Fed will balance and moderate inflation is by raising the interest rates a little bit.
Does This Mean You Should Buy Now?
I know some people will start to freak out about that and think, “Oh, my gosh. The rates are going to go up. I better buy right now.” Well, maybe. If it’s time for you to buy, you should. I know I’ve had some financial planners telling my clients that they should probably start seriously thinking about buying because the interest rates are going to start to inch up. But I think that we’re still at the all time low on interest rates. And it’s pretty amazing how low they are in the 3% range. They are saying that they’re going to bump the interest rates for the overnight lending for the Fed three times in the coming year than 2000 or in 2022. And that will affect our rates, but our rates are still pretty amazing.
Putting Things in Perspective
I know when I bought my first car, when I was 22 years old in 1982, I paid 21% interest. When I bought my first house in 1990, I paid 10.5% interest and thought, “Oh, my gosh. I’m getting a great deal.” So when our interest rates are three, three and a half, four, four and a half, it’s still pretty amazing pricing. But it is money and it does cost you more when the interest rates go up. So if you’re thinking, “Maybe I should, maybe I shouldn’t. Should I jump into this crazy market?” Well, if the prices keep going up and the interest rates go up, you know that’s obviously going to cost you more on both ends. Whereas if you buy right now and you use the interest rate that’s out there, the available funds, and the prices keep going up, you’re actually going to save yourself quite a bit of money. So just keep that in mind. Don’t freak out about the Fed rate going up. Just monitor it.
Guidance During This Time
We pay attention to that, to try to make sure that we’re giving our clients the best guidance. Stay tuned. We’ll see how it all happens. And then I also wanted to get one of my friends who’s a loan officer online on our show to give us a better understanding of how all that will affect you.
For More Information | Maui Interest Rates
So hope this helps. If you have any questions, by all means, reach out to me and let me know. If you’ve got questions about what to buy, where to buy, when to buy, again, same thing, just let me know how I can help. I’d be happy to do that. If you’re a cash buyer, obviously, this doesn’t matter for you. So we can use cash and buy anything you want, anytime you want without worrying about interest rates. We like that, too.
we would love to be your resource here on Maui. Aloha, have an amazing day.