Fed Raises Interest Rates Again
As we stated in a prior report and blog the Fed has raised it’s benchmark interest rate as of 6/14/2018 as they predicted in their report on 5/7/2018 for the second time this year signaling that they may step up its pace of rate increases. Economists said the Fed left little doubt that it’s prepared to increase the pace of its credit to guard against high inflation later on. “The labor market is getting tighter, and price pressures are picking up,” said Greg McBride, a chief financial analyst at Bankrate.com. “The Fed is prepared to be quicker about pushing rates higher.” It is expected to bump up rates three more times this year.
What does this mean for the Real Estate market? What is different about this rise is a growing concern that borrowing costs are more likely to continue to rise. This could make the challenges of today’s seller’s market even worse for some prospective purchasers—particularly first-time buyers. The rate hike is not going to stop most buyers’ decision to purchase a home. Instead, it will create a sense of urgency.
The good news is interest rates alone do not determine the decision to purchase. People still want homes they hope would appreciate with time, and that they can take pride in. Some shoppers would need to settle for properties at the lower end of their budgets. The problem with that is that there is a shortage of affordable houses currently on the market. A rising-rate environment makes waiting on home buying more expensive. Starter home values are rising at a faster clip than luxury homes, according to Zillow.
When buying or selling a home in today’s market, you should not only look for market savvy Realtors who have experience in today’s market, you should look for a team of professional Real Estate Consultants to guide you through the process of everything that needs to be done. Susan Compagner has created a team of highly trained professional Real Estate consultants called the Compagner Real Estate Consulting Group. When you hire them you receive expert advice from people who are knowledgeable, experienced, and who will truly listen to your Real Estate needs. Our clients say, “Susan and her team are compassionate and caring about what they do. They have helped us when no one else could.” As Your Trusted Real Estate Consultants, our team meets with you and offers you the guidance and the information you need to make every facet of your transition as smooth and comfortable as possible. As full-time Consultants, we are able to work the market for you, keeping you up-to-date with conditions as they impact the market. Let us help you ‘Make A House Your Home.” Call/text Susan Compagner at 616.836.2603, [email protected] www.SusanCompagner.com.