How will rising interest rates affect the 2017 Housing Market.
In reading the article below it is saying that 10% of First Time Home Buyers are backing off the intent to purchase their first home this year due to rising interest rates....
WHY WHY WHY? Simple question... They are unsure about the next 4 years. They don't like a higher rate then they have been seeing the past 7 years...
NEWS FLASH... RATES WILL NEVER BE THAT LOW AGAIN... If you are on the fence about buying but are unsure about the interest rate you are being quoted, don't wait 3-6 months and hope they will adjust back down to what you saw a year ago. If you choose to make that wait... You will be paying more for the same house you wanted 6 months earlier... If they choose to Raise rates three times as they want to, then you can expect at a minimum a 3/8 of a percent rate increase at the bare minimum and 1/2 to 3/4 a percent most likely.
Contact our Preferred partner today, if you want to get off the fence and start the process of getting your first home today.
Article by Rismedia.com below:
The Fed keeps rates unchanged in anticipation of Trump policy.
The Federal Reserve kept the key interest rate unchanged this week as it looks to future fiscal policy under the new administration - a decision in line with its intent to raise rates only gradually in 2017.
"In view of realized and expected labor market conditions and inflation, the [federal open market] Committee decided to maintain the target range for the federal funds rate at 1/2 to 3/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2% inflation," according to a statement by the Federal Reserve.
Approximately half of Americans recently surveyed by Bankrate are concerned about rising interest rates; according to Realtor.com, the proportion of first time home buyers plan to enter the housing market this spring has fallen 10% since the election due to higher mortgage rates.
The Federal Reserve expects to raise the key rate 3 times in 2017, but the current consensus among analyst is that the rate will not rise until June. The Federal Reserve raised the key rate 1 time in 2016, 1/4 percentage point, in December.