Those 3% Days Are GonePrepare for the Federal Reserve to raise interest rates on March 15 at their next meeting in Washington D.C.
Why is this significant?
A rate hike this early in the year suggests we can expect 2 or 3 rate hikes in 2017. This is a departure from the single rate hikes in 2015 and 2016, both which took place in December of those years.
Janet Yellen, Chair of the Fed, announced last week that given employment and inflation numbers, the central bank will make adjustments and not as slowly as it did in 2015 and 2016.
Home sellers and buyers, be prepared. Interest rates impact affordability.
Homebuyers calculate their purchase based on the monthly mortgage payment. As monthly payments increase homebuyers will be forced to lower their purchase price.
Sellers will face smaller pools of buyers as the interest rates increase because we know that interest rates will increase more rapidly than income.
Contact me for a market analysis if you or anyone you know anticipates selling anytime soon.
Like a good scout, always be prepared!