Article: Orange County, Calif., mortgage rates drop after Fed rate hike.

Byline: Hang Nguyen

Jul. 1--Orange County mortgage rates dropped a tad Wednesday after the Federal Reserve raised interest rates.

That's the short-term effect of the Fed's move. If the Fed raises rates again later this year -- as is expected -- it might push up mortgage rates enough to slow the price appreciation that O.C. homeowners have enjoyed. Home prices appreciated at an annual rate of 36 percent in May, which is unlikely to be repeated.

If the 30-year mortgage reaches 8 percent -- about two percentage points higher than today -- it likely would significantly affect the housing market, experts said.

Because the Fed had clearly ...

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