Today the Federal Reserve raised the base rate and signaled the end to holding the rates down. It’s been 9 years since the last rate increase and something that most of us have saw coming for a long time. The interesting part is so many young Americans have grown up only knowing 3-4% mortgage rate while those of us that are a little older can remember the days of 15% and more.
So what does that mean to people that have been waiting to buy? Without a crystal ball nobody and say but it’s clear the Feds are done holding down rates which means they should start to go up. The goal is draw them up slowly as to not hurt this fragile economy but again nobody really knows how the markets will react to this.
Here’s a video from the Feds explaining this move and while it’s over a hour long the first 4 minutes tell you a lot of what their plans are:
So what should you do? Now is the time to get serious about your home purchase. Right now prices are still going up and now with rate potentially going up the cost of buying a home is going to follow suit. Please contact one of our buyer partner agents to learn more about how this can affect you and they will be happy to help.