My, How You've Grown!

By
Real Estate Agent with Remax Trinity 2001010154

Have you had a look this week at the interest rate?  In the Real Estate industry we certainly have.  The interest rate, our dear, tiny friend since 2008 is standing against the wall and marking a new pencil line for its growth.

 

Now, the sky isn't falling and loans aren't going to change right away.  The Federal Reserve wisely nudged rates up ever so slightly so as not to shock our newly recuperated economy.  Baby steps are very important when the ripples of rate hikes spread out through a fragile, global marketplace.

 

I will not counsel my buyers to put down the eggnog, stop wrapping gifts, and purchase a home before interest rates sprout up like a six year old child. Inventory is low, folks are busy, and it's going to be okay to wait until our market comes back to life in February to buy a home.  At the same time, it's good to know that the cost of borrowing is climbing.

 

All good things (and bad things, for that matter) must come to an end.  The magnificently low interest rate served its purpose.  Our real estate market was wounded, and the tremendous buyer incentive of a rock bottom rate helped it to heal.  I'll take the vigorous market and incremental rate increases.  It's a good place for real estate to be.

Posted by

 

       Mark Piscitelli and Theresa Ziebro - Northeast Ohio Realtors

       mphomesearch.com

Comments (5)

Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Great title for your post and wonderful attitude about the changes in the industry over the years and what's going on now.

Dec 17, 2015 09:24 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I believe we'll see them increase between 1.5 - 2 % over the next 18 months ?

Dec 17, 2015 09:27 PM
Mark Piscitelli & Theresa Ziebro

I agree, Michael.

Dec 18, 2015 11:20 AM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Mark, when I bought my first condo back in the early 80's, interest rates were around 18 percent.  And people were still buying homes.

Dec 17, 2015 09:42 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Interest-ing? (pun) For nearly a decade, it waited. Now, its leaving the station

Dec 17, 2015 09:53 PM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

A small pop in the interest rates will get buyers have been sitting on the fence to make a decision now 

Dec 17, 2015 09:56 PM