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.