What is the Impact of the Fed Raising Interest Rates?
The Fed raised interest rates this week, it's the first hike in 20 years. What does that mean for the real estate market?
It's Mark Gellman, eXp Realty, St. Louis, Missouri. Mark's Market Update. What is going on in the real estate market and what was the impact of the Fed raising rates?
I'm hearing these questions often, Fed raising interest rates.
- I don't believe it's going to have a significant impact on the real estate market.
- The reason being is, we don't see a direct correlation between the Fed raising the rates and mortgage rates because over the last three months interest rates have gone up almost two and a half percent. ❌
- We believe there'll be bumps up but, overall, we don't see significant changes.
When the market does cool down, not sure when, we should see interest rates possibly in a two, three years go down.
- But the impact overall of the increase in interest rates and the increase in home prices has impacted buyers buying power.
- We are seeing buyers getting out of the market, although there is still overdemand right now.
The good news for a seller is, there's more than enough demand to get incredible pricing for your home. ⬆️
If you're a buyer that wants to participate in this market there are opportunities, you just need to be aggressive, in many cases, to formulate your offer to make sure it reflects the best terms for today's market.
We're seeing less than one month of inventory throughout the market consistent in all areas.
- Over the next year I don't see any big significant changes.
If you're looking to buy, sell, invest, you have any questions about the value of your home, you want information about the market and what we're projecting, don't hesitate to call, email or text.
Thank you so much.