THE FED RAISES INTEREST RATES YESTERDAY FOR MORTGAGES
The Fed announced it's plan to raise interest rates yesterday by 0.25% and expect the rates to continue to increase by 1% each year over the next 3 years which means that by the end of 2018, rates should be somewhere around 7% for mortgages. The Fed feels the economy has recovered and is strong enough to handle the turn back to normalcy. They expect a continued economic growth of 2% over the next few years in which case they will continue their plan to raise interest rates for mortgages.
What does this mean to you looking to buy a home in Phoenix?
This means that money just became more expensive to borrow which in turn means that the average yearly cost to a homeowner just went up by $840 per year on a $250,000 home here in the Phoenix area. Save yourself +/-$1000 next year by buying a home now! Don't wait to buy your dream home here in Phoenix or move across town to your dream home in Gilbert. Now is the time to make a move. Sell while there is a high demand and more buyers looking to beat the rate increases as well. Do not post pone your move!
We should see a big push from buyers who have been taking their time to enter the marketplace. These buyers will see the value in buying now rather then waiting with the threat of rising interest rates becoming a reality. If you have a home to sell, this would be a great time to talk with a local professional real estate consultant to determine a plan of attack to attract all these buyers and secure a great deal for you and your family to move forward.
Call us today to learn more about how this increase in Mortgage rates will affect you directly and learn how we can help you as a trusted local resource - (602) 748-6136
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