Fed rate hike imminent, but mortgage rates could actually drop
On December 16, for the first time in 9 years, the Fed will finally raise short term interest rates. Despite what the media is saying, mortgage rates will remain stable, and could actually drop a bit. Inflation is still very low, and the real estate market is still soft. Lenders know a significant rate hike would ice the market. They tried a couple summers ago and it was a fiasco. Sales just stopped, and a lot of mortgage reps were laid off. The economy is slowly improving, but not enough to support higher rates.