The end of 2015 led with an announcement that U.S. economic data was looking favorable, and the Fed’s raised the interest rate for the first time in December since the financial bubble burst.
Since then, international markets have had a more difficult time finding solid ground, and the U.S. markets have experienced a volatile start to the year, leading the Fed to back off. The June meeting will be the next time the Fed opens the possibility to raise interest rates, but the decision is still up in the air.
With only one or two rate rises expected for 2016, how will homeowners be affected?
From the first mention of the rate rise in December, we have burst myths that the Fed rate directly affects the mortgage interest rate [link to blog]. Whether there is one or two interest rate hikes in 2016 will have little effect for the housing market.
How does this change the conversation around interest rates for residential mortgages?
Nationally, interest rates include housing shortages with homebuilding lagging behind can affect residential home interest rates.
However, in the Raleigh-Durham area, construction continues to be strong for new homes, and the spring buying season has been active. It’s not too late to jump on mortgage that will meet your long-term and short-term needs.
Whether you are looking to move this spring or summer or looking long-term with the addition to your family, we are here to answer your mortgage questions.
“Mortgage Lending is Our Business: Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you.
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