A truly massive interest rate hike is now on the table
By Julia Horowitz, CNN Business
Central banks have made clear that after a sluggish start, they're serious about putting a lid on inflation. Now, as prices soar even faster than expected, they're weighing increasingly drastic options.
What's happening: Investors see a growing probability that the Federal Reserve could hike interest rates by a full percentage point at its next meeting for the first time in the modern era. In June, the Fed raised interest rates by three-quarters of a percentage point, which it hadn't done since 1994.
Consumer prices jumped 9.1% year-over-year in June, a fresh 40-year high and a larger increase than forecast. But policymakers indicated deep concern.
"I think the markets would have a heart attack," Fed Governor Christopher Waller said last month.
Much of the June increase was driven by a jump in gasoline prices, which were up nearly 60% over the year. The price of household furnishings jumped 9.5% during the same period, while airline fares leaped more than 34%.
Rates are going up, and home prices are starting to come down. If you have been considering a reverse mortgage to get some equity out while the getting is still good, now is the time. Don’t wait until you need it, cash is king so put more money in the bank.
It’s amazing how many people forget that a correction happens on average every 13 years. Starting in late 2008 I had loans in process than went down over $100,000 between application and closing. Many people could no longer be qualified.
If you’d like to learn more about a reverse mortgage, and to see how much you can qualify for, use my free reverse mortgage calculator at www.sunshinestatemortgage.com.
