If you’ve been on the fence about selling, you may want to decide soon whether to sell or hold your property.
Rates on the Move
Home loan mortgage rates have been at historic lows for about seven years, now. In June, though, Federal Reserve Governor Jerome Powell indicated that not one, but two rate hikes can be expected in 2015.
The Fed’s announcement that interest rates will be adjusted upward this fall was coupled with an expectation for another increase before the year is out. Each of these two increases is anticipated to be approximately ¼ percent, with an additional one percent increase forecast each year for the following few years.
Given various situations across the globe in world markets, and the way the US dollar is impacted by such fluctuations, it’s possible that rate increases could hit sooner, and potentially rise more dramatically than currently anticipated.
Will Your Bubble Burst?
These rate increases were announced during a time when home prices have been enjoying an upward trajectory. In some regions, home values have nearly doubled or better just in the past few years, with values continuing to increase steadily.
With the last housing market crash still stinging in recent memory, homeowners are anxious to determine how large this bubble will grow before hitting its peak.
Gazing Into the Crystal Ball
Potential buyers who have been planning a home purchase a few years from now are starting to reconsider, and preparing to buy in the immediate future to beat the rate hikes.
Autumn may bring a rush of buyers anxious to get in on manageable rates before they rise even higher. That could be the last wave of a large pool of buyers before the purchasing frenzy quickly cools off.
Contact us today to begin considering your sell or hold options.
Fed’s Powell says two rate hikes possible this year