The Fed Raised Rates: What Does that Mean for Housing?

The Fed Raised Rates: What Does that Mean for Housing?
January 6, 2017 No Comments » Featured Reading michael

You may have heard that the Federal Reserve raised rates last month… But what does that mean if you are looking to buy a home in the near future?

Many in the housing industry have predicted that the Federal Open Market Committee (FOMC),the policy-making arm of the Federal Reserve, would vote to raise the federal fund’s target rate at their December meeting. For only the second time in a decade, this is exactly what happened.

There were many factors that contributed to the 0.25 point increase (from 0.50 to 0.75), but many are pointing to the latest jobs report and low unemployment rate (4.6%) as the main reason.

Tim Manni, Mortgage Expert at Nerd Wallet, had this to say,

“Homebuyers shouldn’t be particularly concerned with [last week’s] Fed move. Even with rates hovering over 4 percent, they’re still historically low. Most market observers are expecting a gradual rise in home loan rates in the near term, anticipating mortgage rates to stay under 5 percent through 2017.”

Bottom Line

Only time will tell what the long-term impact of the rate hike will be, but in the short term, there should be no reason for alarm.

 

Michael Lux, Sr. Loan Officer

Serving S. Florida since 1982
3878 Sheridan Street, Hollywood, Florida 33021
Alterra Home Loans, A Division of Venta Financial Group
NMLS#: 357171
“Building Wealth Through Real Estate”
Board of Directors / Veteran’s Assn. of Real Estate Professionals and Broward Board of Realtors Education Committee
Download my free mortgage APP, go to mlux.mortgagemapp.com
About The Author

Leave a reply

Your email address will not be published. Required fields are marked *