Federal Reserve increased interest rates 25 basis points or .25% today for the first time in 9 years. What does this mean to the housing market? The increase isn’t significant enough to affect the local housing market in the short term. However, many experts are predicting interest rates will go up 1% in 2016. This will increase the cost associated with your new mortgage by 12% with every increase of 1% to interest rates.
The winter market has seen a dramatic drop in real estate inventory with a sustained buyer demand creating a very strong Seller’s market with then 4 months of inventory across the board. With increased rates buyers will become more urgent via for the same homes. Savvy home owners will take advantage of high prices, low rates and highly motivated buyers by putting their home on the market in Jan. and Feb. Many people are finding www.ncwhomevalues.com a valuable resource to get an instant online home valuation so, they know how much money they could potentially walk away with. By selling now instead of later those sellers that will in turn become buyers will avoid unnecessary expenses associated with much higher interest rates later in 2016 when rates go up again and again.