I’ve been asked this question several times this past week, what now? It has been 9 years since the Feds raised the Federal Funds Rate. Extraordinary times, extraordinary circumstances, extraordinary measures. Interest rates have been held down so much longer than many of us anticipated they would be while we clawed our way out of the housing/economic crisis. In mortgage industry minds, it has been a question of when the Feds would raise the interest rates, not if. Turns out when was 12/17/2015. What now?
The way I see it, licensed in 16 states, I see variations in different housing markets. But, overall…
Now… some fence sitters are jumping in to finally refinance or sell their home and buy up before their buying dollar is suppressed. Now… some fence sitting buyers may go ahead and jump in.
Now… the buyers who have been waiting for their incomes to increase, their debt to be paid down, their credit history to heal – they have solid reasons for waiting, and will continue to wait before entering/re-entering the real estate market.
Now… Buyers who are in stable job markets like ours here in the greater Austin, Texas area who have seen rents at (or higher than) levels then they could pay for their housing expense by purchasing and prefer the homeowner over the renter lifestyle will continue buying in droves. A couple of small interest rate increases are not going to turn them away from this plan.
What now? Mortgage companies will continue to focus on meeting the service expectations borrowers and regulators have. Borrowers will continue to seek trustworthy lenders who will meet them where they are. That’s how I see things now.
See you out there!
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