Craig Toberman Featured in CBS News to Discuss Rising Mortgage Rates
Craig Toberman was recently featured by CBS News to discuss how increased inflation has led to high mortgage rates in the article “Why are mortgage rates so high?”
“The main reason mortgage rates are so high (and may go higher) is due to the increased inflation we have seen in the economy in recent years,” says Craig Toberman, CFA, CPA, CFP, Founder of Toberman Wealth. “
“To fight inflation, the Federal Reserve must raise short-term interest rates to try to cool down the economy. This increase in short-term rates, and the threat of rates staying higher for longer, causes longer-term rates like mortgages to also rise.”
Later in the week, Craig was featured again below in two more articles by CBS News with tips for homebuyers in “3 factors influencing mortgage rates – and what to do about them” and “Does an ARM make sense with today’s high rates?”
Consider an adjustable-rate mortgage (ARM): “One way to get around high mortgage rates is with an adjustable-rate mortgage (ARM). ARMs start out with a lower rate that lasts for a specific term, after which the rate varies based on current market rates. “ARMs are a good way to lock in a low rate for a fixed period of time,” says Craig Toberman, CFA, CPA, CFP, Founder of Toberman Wealth.
“That said, this isn’t the best choice for everyone. Toberman continues, “[ARMs] are risky because once the fixed period expires, your rate could double or even triple. The key to success with an ARM is to try to estimate how long you will be in your new home. If you have a seven-year ARM, and you intend to sell your home and move within seven years, an ARM may be an excellent choice for you, especially in an environment like today where rates are rising quickly.”
If you are interested in hearing more of Craig Toberman’s thoughts on other retirement planning strategies, please book a call with him.
Craig Toberman is a Partner at Toberman Becker Wealth – a fee-only, fiduciary financial advisor based in St. Louis. He assists families and businesses with strategic financial planning and long-term wealth management. He has over a decade of experience in financial services and has crafted custom financial plans for hundreds of families and businesses.