Mortgage Rates are slightly higher from last week as the trend for 2022 continues to leave uber low mortgage rates in the rear view mirror.   This past Wednesday’s Fed Meeting cause investors to expect a faster pace of tightening which was the cause for rates to rise.  The actual inflation and economic growth data had little to no impact on traders heading for the exits.


Why?  As the Fed tapers, sells off their balance sheet (which brings excess supply to the market) and rates Fed Funds Rate, this action devalues an investors bond holdings.  If you held an investment that you feared would be worth less tomorrow than it’s valued for today, wouldn’t you sell it?  Well, this is exactly what bond traders are doing and the effects are snowballing.  Adding fuel to the fire, Fed Chair Powell would not provide a target number of rate hikes in 2022, but he did stoke the fire (fears) when he said “there’s quite of bit of room to raise rates without threatening the labor market.”

Bottom Line: With increase uncertainty comes increase volatility and trying to time the markets swings is unnerving for most clients, we are therefore recommending clients LOCK as soon as escrow opens.


About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 46 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 26 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.