Fed’s decision won’t rile the housing market: Fannie Mae economist




There is much speculation about the upcoming Fed meeting September 17, 2015 regarding interest rates. Most predictions seem to favor no change in interest rates, and, should the Fed decide to raise rates, the rate change would be small. Even a small change in the Fed rate would not affect mortgage rates much.

"When and if the Fed nudges overnight interest rates a bit, Duncan thinks the short end of the Treasury curve will show modest gains in yields, and the long end “won’t move much.” Fannie Mae’s forecast for the 30-year fixed mortgage rate at the end of 2016 is 4.3%. That’s up a bit from current prevailing rates just under 3.9%, but hardly enough of a rise to alter home sales or prices significantly."

Read the complete article here.

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