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

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Real Estate Agent with Keller Williams Greater Omaha 20041001

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

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

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.

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Rainmaker
2,661,907
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I shared this info too from Keeping Current Matters, great stuff!

Dec 22, 2016 06:42 AM #1
Rainmaker
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Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

The next year will be interesting. I expect the economy to grow leaps and bounds, but I also expect rates to go up which will impact what people can afford to buy. Time will tell!

Dec 22, 2016 08:49 AM #2
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Rainmaker
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The Trumm Team Omaha Homes for Sale, Real Estate

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