{"id":2037,"date":"2017-03-16T00:00:00","date_gmt":"2017-03-16T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/fed-votes-to-raise-rates-the-housing-impact\/"},"modified":"2017-03-16T00:00:00","modified_gmt":"2017-03-16T00:00:00","slug":"fed-votes-to-raise-rates-the-housing-impact","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/fed-votes-to-raise-rates-the-housing-impact\/","title":{"rendered":"Fed Votes to Raise Rates: The Housing Impact"},"content":{"rendered":"

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The Federal Reserve is picking up the pace, voting on Wednesday to raise its key interest rate just three months after its last rate hike. The Fed announced that short-term interest rates will increase by one-quarter of a percentage point and suggested that two similar increases likely will occur later this year. Mortgage<\/a> rates aren\u2019t directly tied to the Fed\u2019s short-term interest rates but tend to follow them.<\/p>\n

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Read more<\/strong>: Rising Rates, Rising Sales<\/span><\/p>\n<\/blockquote>\n

\u201cIf you think it\u2019s been hard so far to find a home that fits your budget and your needs, it\u2019s going to get worse,\u201d says Jonathan Smoke, realtor<\/a>.com\u00ae\u2019s chief economist. \u201cThere will be even fewer homes for sale\u201d now.<\/p>\n

Homeowners who already have lower mortgage rates locked in may have less incentive to trade up or buy a new home. Their increasing desire to stay put could continue to press already tight inventories of homes for-sale across the country.<\/p>\n

As of Tuesday, the 30-year fixed-rate mortgage averaged 4.39 percent, according to Mortgage News Daily. Last summer, rates were near record lows of 3.44 percent.<\/p>\n

In anticipation of the Fed\u2019s move, the market has already seen mortgage rates increase more than a quarter of a percentage point over the past few weeks.<\/p>\n

Home buyers likely will need to expect to pay about 3 percent more each month on their loans<\/a> for a $250,000 home if they had a 20 percent down payment\u2014or about $29 more per month or $348 more over the year, Smoke notes.<\/p>\n

\u201cThe small changes we\u2019re seeing shouldn\u2019t price too many people out\u201d of homeownership, Smoke says. \u201cBut if you keep adding it on, it will price people out.\u201d<\/p>\n

The Fed has raised rates only twice in the past decade. But Wednesday\u2019s decision to raise rates again, just three months after the last increase, does signal a quicker pace for the year. The Federal Reserve voted in December 2016 to increase rates by one-quarter of a percentage point.<\/p>\n

“Rising inflation will predominantly dictate the next monetary policy decision, but another short-term rate hike should be expected by the end of the summer,” Lawrence Yun, the chief economist of the National Association of REALTORS\u00ae, notes\u00a0at the association’s Economists’ Outlook blog. “Right now, rents and housing<\/a> costs are increasing faster than other components because of the stubborn housing shortages in much of the U.S. To contain inflation and slow the pace of future rate hikes, more home construction is needed now.\u201d<\/p>\n

Source: \u201cHow the Fed\u2019s Latest Move Is Expected to Hurt Buyers,\u201d realtor.com\u00ae (March 15, 2017) and \u201cFed Quickens Pace, Raises Rate 3 Months After Last Hike,\u201d RISMedia (March 15, 2017)<\/em><\/p>\n

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The Federal Reserve is picking up the pace, voting on Wednesday to raise its key interest … Fed Votes to Raise Rates: The Housing Impact<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":2038,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[1403,2890,625,62,12908,543,3051,627,127,557,344,604,408,1295,258,1007,41,818,15282],"class_list":["post-2037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-buy","tag-construction","tag-down-payment","tag-for-sale","tag-home","tag-home-buying-guide","tag-homeowner","tag-homeowners","tag-homes","tag-homes-for-sale","tag-housing","tag-loans","tag-mortgage","tag-mortgage-rate","tag-new-home","tag-owners","tag-property","tag-real","tag-ross"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4173,"url":"https:\/\/amazingproperty.com.ng\/blog\/interest-rates-dodge-another-close-call\/","url_meta":{"origin":2037,"position":0},"title":"Interest Rates Dodge Another Close Call","author":"Amazing Property","date":"May 4, 2017","format":false,"excerpt":"The Federal Reserve voted Wednesday to leave its benchmark interest rate alone, citing signs of a slowing economy between the January-to-March quarter. The benchmark rate will stay low, near 1 percent. However, the Fed cautions that it expects that a strengthening economy and job market in the coming months will\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2318,"url":"https:\/\/amazingproperty.com.ng\/blog\/could-rising-rates-be-good-for-housing\/","url_meta":{"origin":2037,"position":1},"title":"Could Rising Rates Be Good for Housing?","author":"Amazing Property","date":"March 21, 2017","format":false,"excerpt":"The Federal Reserve is finally taking more action to raise its short-term rates. Last week, it voted to raise the Fed funds rate by 25 basis points. That is expected to add pressure to mortgage rates, too. Many housing analysts fear that rising mortgage rates could further impact home affordability\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8910,"url":"https:\/\/amazingproperty.com.ng\/blog\/era-of-super-low-mortgage-rates-is-over\/","url_meta":{"origin":2037,"position":2},"title":"\u2018Era of Super-Low Mortgage Rates Is Over\u2019","author":"Amazing Property","date":"September 27, 2018","format":false,"excerpt":"\u2018Era of Super-Low Mortgage Rates Is Over\u2019 | Realtor Magazine \r \r Internet Explorer does not currently support REALTOR\u00ae Magazine search. IE users, please download Firefox, Chrome, or Edge. The Federal Reserve on Wednesday voted to raise its benchmark interest rate by a quarter of a point to the highest\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"mortgage rates","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/09\/09_27_18_Mortgage_Rates_Feature.jpg?fit=586%2C330&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/09\/09_27_18_Mortgage_Rates_Feature.jpg?fit=586%2C330&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/09\/09_27_18_Mortgage_Rates_Feature.jpg?fit=586%2C330&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":6413,"url":"https:\/\/amazingproperty.com.ng\/blog\/higher-interest-rates-press-on-loan-demand\/","url_meta":{"origin":2037,"position":3},"title":"Higher Interest Rates Press On Loan Demand","author":"Amazing Property","date":"September 27, 2017","format":false,"excerpt":"The highest interest rates in a month prompted a setback to the mortgage market last week. Total mortgage application volume\u2014which includes applications for home purchases and refinancing\u2014dropped 0.5 percent on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday. The more telling part, however, is that volume is now\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Mortgage_Activity_092717.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/Mortgage_Activity_092717.png?fit=620%2C326&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/Mortgage_Activity_092717.png?fit=620%2C326&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/Mortgage_Activity_092717.png?fit=620%2C326&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7478,"url":"https:\/\/amazingproperty.com.ng\/blog\/despite-fed-move-mortgage-rates-hold-steady\/","url_meta":{"origin":2037,"position":4},"title":"Despite Fed Move, Mortgage Rates Hold Steady","author":"Amazing Property","date":"December 15, 2017","format":false,"excerpt":"Mortgage rates were in a holding pattern this week, even after the Federal Reserve voted Wednesday to hike its benchmark interest rate. \u201cAs widely expected, the Fed increased the federal funds target rate this week for the third time in 2017,\u201d says Len Kiefer, Freddie Mac\u2019s deputy chief economist. \u201cThe\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Rates121417.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/rates121417.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/rates121417.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/rates121417.png?fit=620%2C252&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7998,"url":"https:\/\/amazingproperty.com.ng\/blog\/fed-move-doesnt-suppress-mortgage-rates\/","url_meta":{"origin":2037,"position":5},"title":"Fed Move Doesn\u2019t Suppress Mortgage Rates","author":"Amazing Property","date":"February 2, 2018","format":false,"excerpt":"The Federal Reserve may have voted to leave its short-term interest rates unchanged this week,\u00a0but that didn\u2019t stop lenders from moving up mortgage rates. 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