FED raises rates but mortgage rates remain low!

For the Week Ending June 16, 2017 Please enjoy this quick update on what happened this week in the housing and financial markets. The Fed raised policy rates by 0.25% as expected at this week's FOMC meeting. However, the Fed doesn't directly control mortgage rates. The 10 year treasury bond which correlates to mortgage rates was little changed. . Inflation rates released this week came in below the expected level. Low inflation helps provide an environment for mortgage rates to remain low as well. 12 of 16 Fed members signaled they expect to increase rates at least once more this year. Markets have been slow to react to the news though. Inventory is still a challenge in most markets. The number of homes on the market in May fell 10.9% year-over-year, marking 20 straight months of year-over-year declines. However, sales increased 7.5%.     Rising prices are bringing out home flippers again. More than 2/3 of the 44k single family homes flipped in the 1st quarter were by mom-and-pop investors. **Be sure to check with us to ensure a specific flip is going to be FHA eligible.       Seller to Agent: You’ve done such a great job describing my house in your real estate listing that I’ve decided to keep it!