The real estate game is primed to get a little more interesting in the very near future. With the Federal Reserve tipping their hand a bit regarding an increase in interest rates we are expecting an increased urgency to buy in the short term.
Since the 2008 financial crisis The Fed has purposely kept interest rates low to help the market recover, but over the next six months the experts all agree that the rates will begin to rise.
So, what does this all mean to you? Maybe nothing, but if you are considering a move the rise in interest rates will mean that the average home buyer will be able to afford less because of their changing debt to income ratio. And that can mean a lower demand for homes in a certain price range.
To make a long story short, if you’re on the fence about buying a new home for personal or investment purposes, we’d strongly recommend jumping off that fence! You’ll find that you can afford more house and you’ll save yourself quite a bit of money over the life of your mortgage.