Tricks AND Treats

First the TREATS:

• The Federal Open Market Committee (FOMC) met this week and raised interest rates by another 0.75%
  • This was the sixth rate increase of 2022
  • The Federal Funds Rate is now 3.75%-4%

• Current 1 yr. CDs can be found for 4.60%
  • We expect to see 1 yr. CDs rise to 5%+ over the next few weeks
  • Online savings accounts should also rise, and most are at 3%+

• Core CPI is trending lower and was 8.20% as of September

• Social security and Supplemental Security Income recipients will see their payments rise by 8.70% in 2023

• The market did surprisingly well in October.
  • The DJIA returned a whopping 14%
  • The S&P 500 was up 7.50%
  • The NASDAQ was up 2.50%

Now the TRICKS:

• After the Fed announced the rate hike, the market plunged over 500 points Wednesday 11/2

• 30 yr. mortgage rates are still about 6.50%

• HELOC rates are about the same at 6.50%

• Housing is down due to high rates with existing home sales falling 1.50% in September marking the eighth month in a row home sales have fallen
  • Housing sentiment index is at 38 which is the lowest in ten years, supporting a fact the real estate market is on shaky ground

And ending on a high note, we did a recent survey of mortgage rates:

• RocketMortgage, now partnering with Schwab, offers some unique mortgage products designed to help homebuyers in this high interest rate market
  • Protect Your Rate | Rocket Mortgage
  • Buy And Save With Our Inflation Buster Temporary Buydown | Rocket Mortgage
• We also found some attractive HELOC rates
  • Best HELOC Rates Of November 2022 – Forbes Advisor
  • PenFed 0.99% for the first 6 months, then 5%
  • Fifth Third Bank 2.99% for the first 6 months, then variable
  • PNC Bank 4.28%!

Reference to any specific product or service does not constitute an endorsement or recommendation by Asti Financial Management.