June 15, 2017 : Fed raises rates and says two more increases likely
This week’s Markets In A Minute fills us in on home prices, the news that the fed raises rates an what is expected in the next few months
- As expected, the Fed raised policy rates a quarter percent at this week’s meeting. The increase will likely have little impact on long-term mortgage rates.
- The surprise came with the Fed’s statement that two more rate hikes are likely this year. That’s one more than initially projected.
- Strong economic indicators support the rate changes. Jobless claims dropped 4K from last week, and last month’s retail sales were higher than anticipated.
- Median priced homes are flying off the shelves, so to speak. A recent industry analysis pinpointed the median listed-to-sale time frame at 64 days, a post-recession low.
- A recent Fannie Mae survey found sellers more positive than buyers. Price increases paired with rising rates are tempering buyer attitudes.
- CoreLogic reports the average U.S. homeowner gained $16,300 in home equity over the last year. Increased equity gives owners more flexibility in selling and financing.
|Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.|
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