Many think that because the Federal Reserve raised the Federal Funds rate by .25% yesterday that it means interest rates went up by .25%. That is not the case! Mortgage rates actually went down almost .25%.
No one knows but at some point the Fed will have to sell off mortgage-backed securities and that will increase interest rates.
The Federal Funds Rate does not affect mortgage rates directly but it can indirectly. After the quarter point increase mortgage rates were unchanged yesterday but as of now mortgage-backed securities are higher so we could see an improve in interest rates.
Interest rates have risen to highs for 2015 over the past 2 weeks. Many are predicting rates to continue to increase. The bottom line is that no one knows what they will do.
If you are looking to buy or even thinking about buying a property in Fort Lauderdale or South Florida now is the time to do it. Jumbo interest rates are lower than Conventional interest rates right now.