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Interest Rate Increase

12/18/2015

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There was a lot of news this week about the rate hike. 

As we expected, the Federal Open Market Committee (FOMC) of the Federal Reserve elected this week to raise short-term interest rates; this was the first time since 2006! 

Freddie Mac is predicting that monetary tightening in 2016 will be gradual; and they expect only a modest increase in longer-term rates.
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Mortgage rates will tick higher but remain at historically low levels in 2016. Home sales will remain strong, but refinance activity should cool somewhat next year. We just wanted to give you a little more info in case you were wondering. 



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