Why a rate rise may be good for homeowners

Fed officials announced a broadside to the financial markets that it would be unlikely that another interest rate cut will be announced in the near future and even went a step further by suggesting that if inflation was not under control in the next few months, a rate rise may be on.  However, while the Fed had seen the US housing market as slowing down of late, the good news for American homeowners this week was that the Fed saw that in the short to medium term the US housing market would start to make a recovery.  It’s likely, however, that any recovery in the US housing market will be strictly controlled so that it is gradual, which in the long-term should be more beneficial to American homeowners as long, gradual, sustained growth is generally better all round for US housing prices.