2017 Real Estate Mortgage Rate Outlook
Just this week the Federal Reserve Board raised short-term interest
rates by a quarter of a percent. both the mortgage market and the stock
market had anticipated this rate increase so there wasn't any dramatic
reaction to it.
What was unusual this week was the fact that the Federal Reserve Board
announced that it was going to raise short-term interest rates at least
three more times in 2017.
Actually the interest rates which have been kept artificially low have
been increasing prior to the election and anytime the economy shows
strength, usually interest rates start to move up and this is definitely
a damper on real estate activity. But, it’s really a double-edged sword
because an improving economy and more job creation, increases housing
demand.
