If you haven’t already heard, the Fed met this month and interest rates have gone up. They also announced that they will be increasing them three more times in 2017. This is going to cause the cost of homeownership to rise over time when it comes to your monthly payment.
The cost of owning a home today has already gone up from just last week because of the increases. What does this mean for buyers and sellers?
The most savvy buyers out there are moving up their timelines. If they were looking to buy in the next six months, they are now looking to buy in the next two. They know that interest rates are volatile and the longer they wait, the more they will have to pay for their home.
For the sellers out there, you can’t sell your home unless you have a buyer. If buyers are moving up their timeline and looking to buy in January or February, sellers would miss out on a lot of these buyers by waiting until spring to sell. In the spring, inventory dramatically increases and you’ll have much more competition. That equals less demand for your home.
If you’re looking to buy and have the lowest payment possible each month, the sooner you purchase the better. I hope this advice helps anybody who is curious about what’s going on in the real estate market and how the Fed increasing the rate will affect you.
If you have any questions for me at all, don’t hesitate to reach out and give me a call or send me an email. We look forward to hearing from you soon.