ORANGE COUNTY, CA—For the present, there will be no effect on current homeowners from rising interest rates, but over the longer term mortgage payments may increase, Windermere Real Estate's chief economist Matthew Gardner tells GlobeSt.com. We spoke exclusively with Gardner about the timeline of the Fed hike's impact on this sector, how it might affect those thinking of selling their homes and the effect it could have on the housing stock.

GlobeSt.com: What impact will rising interest rates have on current homeowners in Orange County?

Gardner: For the present, there will be next to no effect. This is because the recent increase in rates has already been priced into mortgage rates. Over the longer term, however, homeowners should expect to see rates rise by .5% from their present levels.

GlobeSt.com: How will it affect those who were thinking of selling their homes?

Gardner: Of course, any increase in rates does affect purchaser's buying power since it makes a mortgage loan more expensive. However, the anticipated increase in rates, at least in the near-term, is modest, and I do not expect that we will see prospective buyers [or sellers] changing their minds because of it.

GlobeSt.com: What will rising rates do to sales inventory?

Gardner: Inventory levels in Orange County remain extremely low with more buyers than sellers, as evidenced by home prices, which are getting very close to the historic highs. Unfortunately, even with this rate hike I do not anticipate that we will see inventory grow enough to meet the growing demand. We may see some homeowners taking advantage of the equity gains, but it won't be enough to meet demand.

GlobeSt.com: What else should our readers know about rising interest rates and homeownership?

Gardner: The bottom line is that rates are going to continue to rise, but the increases will be slow. Although I anticipate that we will see the rate move higher over the next 24 months, they will remain at very favorable levels.

The housing market continues to stabilize, with prices moving higher and tight inventories pretty endemic across the country. Credit standards are, at long last, starting to loosen, and I hope that 2016 will be the year when builders actually step up to the plate and start to break growth in more homes—of which we are in dire need. Belief—although tapered with a bit of healthy skepticism—has returned to the housing market, and with it will come stabilization in the homeownership rate.