House Percentage Scale

Federal Interest Rate Hike & Mortgage Rates

house percentage scaleThe Federal Reserve is in the news this week as it increases short-term interest rates, by a smidge, in response to the steady strengthening of the U.S. economy. And while that increase won’t necessarily have an immediate impact on long-term interest rates, such as those for mortgages, eventual increases in mortgage interest rates are very likely.

But there’s no cause for panic: the increase is very slight, mortgage rates are still historically low, and it’s going to take a while for the effect to ripple through the housing market. Maintaining good credit scores and having reasonable expectations when house-hunting will help all home buyers obtain the best possible homes in our improving economic environment.

Read the basics about the rate hike here, or a more nuanced analysis here.