What about Mortgage Rates?

The central reserve board just raised the prime lending rate another quarter of a percent. It looks like this trend will continue until that magical 'neutral rate' is acheieved and the economy can bake along at a substainable rate. What does this mean for home buyers and sellers, well it means that mortgage rates will be going up over the long term. Mortgage rates are not tied directly to the prime rate, but they do trend the same when taken over time. Rates are still at historical lows, but no one knows how long this will last. As for my sale, I hope this means more home buyers will be getting into the market hoping to close escrow before mortgage rates go up any more.