Below is NAR Chief Economist Lawrence Yun’s immediate reaction to the Federal Open Market Committee’s (FOMC) announcement this afternoon that it’s raising its benchmark interest rate for the first time in 2016:
“The era of ultra-low interest rates is over. Today’s short-term rate hike will be followed by several additional rounds of increases in 2017 and 2018. Despite these moves, mortgage rates will not rise alarmingly. By this time next year, expect the 30-year fixed rate to likely be in the 4.5 percent to 5 percent range.”
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