2nd historic fed rate hike unlikely to ‘further damage’ mortgage borrowers

Here is a little good news on this bad economic day....

The Federal Reserve made another aggressive move Wednesday, raising its benchmark rate by three-quarters of a percentage point for the second time this year to try and tame the economy. However, higher mortgage rates may not necessarily be on the horizon as a result, says Lawrence Yun, chief economist for the National Association of REALTORS®.

“This is unlikely to do any further damage to mortgage rates,” Yun says.

“It is possible that the 30-year fixed-rate mortgage may settle down at 5.5% to 6% for the remainder of the year,” Yun says.

Foreclosures represent less than 1% of sales

Foreclosures and short sales remain historically low, representing less than 1% of home sales in April and down from 2% a year earlier.

Source: National Association of REALTORS®