“The healthy way to buy and sell real estate.”

What Happens Now?

Last week the Federal Reserve raised interest rates by 0.25%, from 0.75% to 1%. Such movement by the Fed can typically place pressure on mortgage interest rates homebuyers apply for. However, since this increase was well anticipated by most of the markets, the general thought among most financiers is don’t expect any significant change in the current mortgage rates now. However, as the year progresses rates will likely continue to slowly rise. This will apply pressure to buyers to pull the trigger to purchase a home sooner than later. Especially first-time homebuyers.

As reported by multiple financial media outlets (i.e. Bloomberg News, CNBC, CNN Money, etc.) The Fed implied such future gradual rate hikes will be dependent on the economic outlook, unemployment figures, as well as income growth. Of course, rising interest rates can negatively impact real estate markets as we know, but with positives signs of economic recovery continuing, low inventories, and increase demand for homes, the question is going to be how much will the negative impact be from gradual rate increases?

To keep the recent Fed rate increase in perspective, you can view it this way. ┬áIf you’re planning on purchasing a home with a $300K mortgage, a single percent difference from 4-to-5% means your mortgage payment will rise from $1,432 to $1,610. Last week’s increase was 0.25%.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Oxnard Shores

Oxnard Shores Condo For Sale!  4962 Nautilus St #3 Oxnard, CA 93035 Call Agent Brooklyn Carras 818-259-0060 for your private showing of this excellent Oxnard Shores beach property! Oxnard Shores welcomes you to this few & far between beach property opportunity in the highly desirable neighborhood of Oxnard Shores! This Oxnard Shores Condo for sale […]

SMART Homes Are Here!

We’re all familiar with the phrase, “Your home is your castle.” In today’s era, millennial buyers are wanting their castles smarter, but they’re not the only ones. In a 2017 Home Buyer and Seller Generational Trend report by NAR (National Association of Realtors),  millennials have become the largest group of potential homebuyers.    A Coldwell Banker survey showed 72% […]

Call Brooklyn!
WP2Social Auto Publish Powered By : XYZScripts.com