This was to be expected. Why?
Fed had already stated it would likely continue to raise interest rates.
As the economy has continued to hold up, which is of course a good thing, a gradual removal of the interest rate accommodation is appropriate to mind inflation.
We got a bit of a warning in December with the first rate increase on 0.25%. Now, this week's first major monetary move of 2017 should indicate that we will see more increases at a much faster tick throughout this year. I wouldn’t be surprised to see us at 4.75% this summer and even over a full point by this time next year.
Meanwhile home prices are also expected to continue to rise as housing inventory gets tighter once again. I think this is largely because there were less new construction starts in the oil uncertainty of 2015-2016 and there is less relocation and hiring that would typically be the cause of people moving in, out, up, and down.
The bottom line:
If you plan on buying a home in 2017 you would definitely save as much as $100 per month by acting now as supposed to later due to interest rates alone. If home prices increase at the same time, unfortunately your buying power starts to dwindle throughout the year. That means starting to look this weekend as opposed to this summer :)
I know this is all a little abstract. So, in real numbers, this is how much it will cost you as interest rates rise throughout 2017 & beyond. The numbers aren’t too much of a shock at this point, but be sure to click through and check out my full projection table so you can see how much you save compared to when we find ourselves well over 5% again. It will happen before you know it!
Want to look ahead Even Further: Click Here
Your call to action here is:
Simply call me to start searching your home for you. I'll take care of the rest.
Likewise, if you know of anyone that want to sell or buy real estate, forward this email to them and have them give me a call.
Yenny Mattei, Yen You Realtor
Cell Phone: (713) 836-8243