Recent Interest Rate Increases Will Affect Everyone

The recent interest rate hike impacts everyone in the real estate market. Here’s how.

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What does the increase in interest rates mean for you?

The Federal Reserve’s interest rate setting committee on Wednesday said that it would raise interest rates by a quarter of a percentage point to between 0.50% and 0.75%. It is only the second time the U.S. central bank has raised interest rates since 2006 when the economy was yet to be hit by the financial crisis.

So what does this mean for the real estate market?

First, if you’re going to buy a home, chances are that you will opt for a 30-year, fixed-rate mortgage like most home buyers do. Those loans have become remarkably affordable, especially since the financial crisis, with their interest rates bottoming out at around 3.5%.

In general, movement of the Fed’s rate does not have a large, direct impact on long-term mortgage rates. But when the Fed’s rate goes up, banks find ways to pass their higher borrowing costs along to consumers.

Because long-term mortgage rates are set in stone, they also factor in the anticipation of future rate increases. That’s part of why mortgage rates have shot up in recent months—the Fed has suggested that interest rates will likely continue rising for years.

As mortgage rates go up, people are a little less likely to buy a house, and those with fixed-rate mortgages are less likely to refinance because they probably will not end up with a better deal.

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Now is definitely the time to either
buy or sell your home.

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What does this all mean for you? It means now is the time to either buy or sell your home. The interest rates are still low and you will be able to lock in that rate.

If you have any more questions about why now is the best time to buy or sell a home, give me a call or send me an email. I’d be happy to help.

Are You Better Off Listing During the Holidays?

You should absolutely consider selling your home during this holiday season. There are many factors working in your favor to do so.

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Looking to buy a Bucks or Montgomery County home? Search all homes for sale.

If you’re a home seller, is it a good idea to list now rather than wait until next year? Absolutely. There are four reasons why:

1. Buyers are highly motivated and serious. They’re not window shopping out there. They need to make a decision and soon.
2. Buyers have fewer homes to choose from. Inventory is lower now than compared to where it will be during spring. As it starts to increase in January, there will be less demand for your home and more competition from other sellers.
3. Houses show better during the holidays. People love to see a lived-in home when it’s been decorated.
4. Mortgage rates are lower now than they probably will be after the first of the year. This means you can buy more home for your buck.

There are plenty of other reasons you should list your home now. If you’d like to know what they are, or you’re thinking about making a real estate decision, contact us by phone or email today. We’d love to assist you!

Happy Thanksgiving, from Our Family to Yours

Thanksgiving is one of my favorite holidays, so today I wanted to take the opportunity to wish you a very happy Thanksgiving.

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Today I wanted to take a few minutes to wish you a very happy Thanksgiving. We pray that you, your friends, and your loved ones experience great joy this time of year and have safe travels wherever you’re headed.

Make sure that you enjoy your time with your family. Thanksgiving is one of my favorite holidays. What we do in my family is take some time to think about what we’re thankful for and tell one another. As our children have gotten older, we’ve started to set more time aside each year to enjoy each other’s company.

We hope and pray that you experience the great joy and peace around Thanksgiving this year. We thank you for all you do, from our family to yours.

In the meantime, if you know anyone who’s looking to buy, sell, or invest in real estate, please feel free to send them my way. I’d be happy to help!