Over the past few months, there has been a lot of buzz about potential interest rate increases. First, they were predicted to go up last September. That didn’t happen, but they did go up in December. Nobody knows if or by how much rates will go up next time, but we do know that they will still be historically low.
It is widely expected that the Federal Reserve will increase rates in 2017. Even if they go up by 1% or 2%, it won’t affect our market much. There are three reasons why:
- Mortgage rates often move independently of the Fed rate.
Any increase in rates will be small. Whether they go up by 0.25% or 0.5%, they will still be historically low.
A shortage of inventory. With a limited supply of homes out there, the Fed will keep the health of the real estate market in mind before taking any action.
In short, the market is doing great right now and it’s likely to stay that way for the rest of the year, regardless of what happens with interest rates.
If you have any questions for me or want to take advantage of current market conditions, give me a call or send me an email. I look forward to hearing from you.