The Fed Raised Interest Rates — Now What?

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The Fed recently announced that they are going to increase interest rates. This announcement has caused quite a bit of uncertainty, and a lot of people are asking me, “How will that increase affect our housing market?”

First off, let me assure you that there is nothing to worry about. The Fed only increased rates by about 0.25%, so rates are still relatively low. Ultimately, that increase will not make a huge impact on our real estate market.

If you look back at the Fed’s September notes, you’ll see that the strength of our real estate market is important to them. There are two markets that are important to our economy: war (which no one wants) and real estate.

The other thing to keep in mind is that even though the Fed has increased interest rates doesn’t mean that mortgage rates will automatically go up. In fact, the last time the Fed increased their rate, our mortgage rates actually went down.

Ultimately, you don’t have to worry about the Fed’s increase in interest rates. If you have any more questions, give me a call or send me an email. I would be happy to help you!