The Federal Reserve and Interest Rates

The Federal Reserve and Interest Rates

“The much anticipated Fed meeting just finished up.  The expectation since the beginning of the year was an interest rate increase by April. That is not happening. The Fed is saying they will remain diligent on watching this. However everyone expects a rate hike THIS year. Possibly by June-September. . . . ”  according to Mike Farrell of the Farrell Team, VP – First Home Mortgage.

What does this mean for home Buyers and Sellers? It means, it’s time! We have a “stay of execution” on higher interest rates  If you or someone you know were thinking about buying a home, now is the time to consult with a lender and get the process started.   If you are thinking about selling your home, homes remain at historically affordable terms.

As interest rates increase, you may see an initial spike in home buyer interest as all those who are worried they are missing the boat attempt to jump on board lest they miss out on taking advantage of historically low interest rates.  If interest rates continue to rise, you may expect a downward pressure on prices in the short term.

Whether you are looking to start the Home Buying Process or want a “no obligation to list” Consultation on Selling your home call Courtney @ 703-728-6590.

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