Chris Graves, Certified Mortgage Advisor

Providing Mortgage Services in MA, NH, ME, RI and FL

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The Fed’s Confusing Message

You may have recently heard that the Fed announced that they think the Fed Funds Rate will remain at zero through at least 2023.

First and foremost, the Fed Funds Rate and Mortgage Rates are two totally different instruments. The Fed Funds Rate can change from one day to another, but a Mortgage Rate may be in effect for over 30 years.

Mortgage Rates will be affected by inflation because inflation erodes the buying power of the fixed return that a mortgage holder receives. And interestingly, the best way to combat inflation is by raising the Fed Funds Rate. If inflation begins to rise, and there are already some signs of this, Mortgage Rates will start to climb in response. All this can occur while the Fed Funds Rate is at zero.

If you would like to see an example of this, look no further than what transpired a few years ago when Mortgage Rates rose nearly 1%, while the Fed Funds Rate remained at zero.

The current rate environment presents an incredible opportunity that should be taken advantage of. Contact me so I can help you benefit before things change.

Chris Graves's avatar

Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.