In this week’s episode of the Mortgage Market Minute, David Sparling, VP of Capital Markets at Success Mortgage Partners, shares an update on the outlook of the mortgage industry as of July 29th, 2022. For those of you who are not up to date with the latest and greatest updates on the industry, we encourage you to tune in here and turn on your notifications for this series!
As many of you may have heard, the Fed’s latest announcement revealed a 75-point basis-point hike in the Federal Funds rate on Wednesday, July 27th. Although this sounds like another giant leap for the Fed, loan officers can rest assured that the market has not seen as much movement as it has in the wake of other recent Fed announcements.
However, in light of this announcement, we may begin to see other changes taking place in the market soon due to the GEP. While it was previously predicted that a recession was on the horizon in Q4 of 2022 or Q1 of 2023, this may become a reality across the country sooner than expected.
In order to combat that incoming recession, we will need to rely on the Fed to alter its stance on interest rates and inflation. Currently, the Fed’s primary focus recently has been on curbing the drastic inflation we’ve seen over the past few months and slowing things down in the economy. Until the Fed changes its stance on this matter and begins implementing actions and policies that can instead boost the economy, the concern will continue to grow amongst industry experts. Talks of the next recession are at the forefront of conversations concerning both the Fed and economic professionals around the country.
For more information, stay tuned for our next Mortgage Market Minute.