Financing September 22, 2022

September 2022 – What the fed hike means for you

As we are entering into a new season of the year, we’re also seeing new things in the mortgage market.

William Rodriguez, Senior Loan Advisor with Smart Money, based in Honolulu, sends out a weekly “Markets in a Minute” video that I find very informative (and efficient!).

This past week, William also shared some further information about the recent fed hike. I’ve included his commentary below for your reference.


What does the Fed rate increase mean for mortgage rates?

The Fed increased policy rates by 0.75% at their September meeting and indicated they will continue raising rates until inflation is tamed.

But that doesn’t mean mortgage rates will rise at the same pace.


  • Market forces also influence mortgage rates. If investors shy away from stocks and invest in safer mortgage bonds, for example, rates may come down.
  • If the Fed moves policy rates too far or too quickly, we could see a recession. Historically, that means lower mortgage rates.
  • Mortgage rates had already risen in anticipation of a Fed move. They may settle down now that the Fed has spoken.

Does this mean you should wait for the possibility of lower rates?

Not necessarily.

I encourage my clients to consider all the moving pieces-not only in the markets, but also in their lives.

If this is the right time for you to buy a home or access cash from equity, then let’s find a way to work within the framework of the current interest rate environment. After all, rates are still lower than long-term averages, and there are options like hybrid ARMs, buydowns and HELOCs that can help in this environment.

Background on the Fed:

  • The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.
  • The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.
  • This is the fifth increase this year.


Looking to speak with a lender to get a better sense of your options for buying a home, 2nd home, or investment property? I work with a number of different lenders and am happy to share the names of several loan offers that I trust to provide you with personalized and exceptional service.  Email me for my list of trusted loan officers.