Mortgage Interest Rates Advance Slightly After Fed Rate Hike, According to Andy May, Raleigh Mortgage Broker

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Despite short term rate increases, long term interest rates persist near 30 year lows, according to Andy May, President ADRMortgage.com.

"The Raleigh-Durham-Chapel Hill triangle continues to see low time-on-market for homes and a shortage of housing units. Home prices in the triangle will continue to grow in this short-housing stock market", according to Andy May.

After much discussion by financial pundits, the Federal Reserve raised rates on December 14, 2017 by a quarter of a percent to a range between .5% and .75%. While many indicate that the Fed will continue to raise short term interest rates, what's lost by many is that as short term rates increase the market's response indicates that long term rates will fall. This makes for an ideal time, the calm before the storm, to purchase or refinance a home.

Rates are predicated on inflation and wage growth; Neither of which are growing much at all. Despite super-low unemployment rates below 5%, wage inflation is non-existent as many Americans are either satisfied or unwilling to move for better wages.

Over the next six months the Fed is expected to raise rates again, mostly to soften the effects of the bubble that is forming in the stock market (as well as crypto-currency markets). With the non-qualified mortgage market taking off, home prices continue to move upward at a 5-7% normalized rate. This is great news for new or first-time home buyers. A slow and steady rise in home prices with a stronger new home construction market continues to point to a buy signal for housing.

Millennials, first time home buyers, and move-up buyers are entering the housing market at a good time. Five years from now things might change, but for now the housing market remains robust, supported by a substantially lower new-home construction market (about 650k units per year versus 1.2M in 2005), super-low 30 year fixed rates (short term rates are rising, and short-term adjustable rate mortgages continue to be ignored by smart consumers), and demographic changes that favor increases in home purchases.

"The Raleigh-Durham-Chapel Hill triangle continues to see low time-on-market for homes and a shortage of housing units. Home prices in the triangle will continue to grow in this short-housing stock market", according to Andy May, state licensed loan officer and 30 year mortgage veteran.

For more information on mortgage loans, call ADRMortgage.com at 919 771 3379 or visit ADRMortgage on the web. Get the most value out of a home sale or purchase by working with licensed professionals that have significant experience. You’ll be thankful you did. You can find additional information from Andy May, mortgage expert, at Andy May's blog. ADRMortgage.com was founded by Andy May in 2005. For additional information please go to http://www.adrmortgage.com or contact Andy May directly. License number 103418.

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