Interest Rates Rising?

For the past few weeks the  FED has been pondering the idea of raising interest rates. So far they have not made the move and rates are at an all time low. Even inching the rates up is not cause for concern. One of the best things for even talking about interest rates rising is that it is keeping the real estate industry on the move. Buyer’s are concerned with the possible rise so they are eagerly getting loan approval and moving towards a home purchase faster now than in the last year. We are now in the fall real estate season and it seems that the most important factor holding back sales is lack of inventory. This is a good thing for a seller and can sometimes be stressful for a buyer.This lack of inventory makes the ability for new home builders to gear up to increase production very important. Existing home sales are still on the rise but new home construction is becoming more and more active as lenders make it easier on builders to get construction loans.The National Association of Home Builders has predicted that first-time home buyers, who most often purchase entry-level homes, will comprise 18 percent of new-home sales this year, up from 16 percent last year. Still, that is far short of the 25 percent to 27 percent share of buyers that first-time home buyers comprised in the market from 2001 to 2005.

All in all the real estate industry is still growing and making a comeback. If the FED raises the interest rates this fall or winter just keep in mind that going up to 4.5 percent is still considerably lower than the rates back in the BOOM days of 2001-2005 when they were 5.5 to 6.5 percent. Knowing your market is key and when working with a Murney agent you will be sure to be well taken care of.