Fed hints at looming December rate hike
The Federal Reserve recently voted to leave its short-term rates unchanged, but it did indicate that a rise to its short-term interest rates is likely on track for later this year.
The Fed kept its key rates near zero for seven years. But since 2015, it has gradually raised rates by a quarter of a percentage point four times. Most recently it raised rates in June at a range of between 1 percent and 1.25 percent.
NAR Chief Economist Lawrence Yun predicts that the 30-year fixed-rate mortgage may rise to slightly above 4 percent by the end of the year, and may reach just 4.7 percent by the end of 2018.