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What a Year for the 30 Year Mortgage Rates

January started calm but the first reports of the consumer price index rate for December 2021

arrived mid-month and all the sudden inflation was upon us. A reading of the press release for

the mid December 2021 meeting of the FOMC (Federal Open Market Committee) that sets the

prime interest rate, barely mentions inflation other than saying inflation had been running over

their target rate of 2% for some time but no action was taken or note of alarm of its impending

impact on our economy was mentioned. Or was any change in their approach in controlling

interest rates. The 30-year mortgage rate was 3.1%.

Today the nationwide interest rate for a 30-year mortgage is now 7.3%. The average interest rate

for the past 50 years, 7.76% according to Freddie Mac. So, we can say we have lived this rate

and life continued pretty much the same for us.

Life changes are prime factors in real estate. As we all know too well life can change in a hurry.

Those life changes may require a change of scenery or at least a change of address to live

comfortably as we can. We will figure it out and live our lives as best we can just like

generations have before us. Just remember we are sources for help in your real estate decisions.

We do this every day, and we love doing it. Always happy to help!

For more info about the Federal Reserve, our central bank, read below. After the first sentence

the rest is directly from their website.

The Federal Reserve and more specifically the Federal Open Market Committee (FOMC)

members manage the economy for 5 specific goals. This is directly from the Federal Reserve


“The Federal Reserve System is the central bank of the United States. It performs five

general functions to promote the effective operation of the U.S. economy and, more

generally, the public interest. The Federal Reserve

  • Conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy.

  • Promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad.

  • Promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole.

  • Fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments.

  • Promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and

the administration of consumer laws and regulations.”

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