The Fed Raised Rates What Does That Mean For Housing

Dated: 12/22/2016

Views: 62

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

You may have heard that the Federal Reserve raised rates last week… 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.



Contact:

Jeff Hannan

[email protected]

520-349-8766

Latest Blog Posts

Rents Are On The Rise Dont Get Caught In The Rental Trap

There are many benefits to homeownership. One of the top benefits is protecting yourself from rising rents, by locking in your housing cost for the life of your mortgage.Don’t Become Trapped

Read More

The 5 Greatest Benefits Of Home Ownership

Recently, Freddie Mac reported on the benefits of home ownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”ONE:

Read More

Home Ownership Tax Loophole Best Gift From The Government Today

Home Ownership Tax "Loophole" Best Gift From The Government Today!The government seems to spend its time finding ways to increase taxes…In 2013, income taxes for America's top earners increased.

Read More

For Renters Or Potential Buyers

Are you currently renting?  Thinking about buying.  Watch to find out whether now is a good time or if waiting is more.

Read More