What Does the Fed Interest Rate Hike Mean for You?

By
Real Estate Broker/Owner with SD Home Source Realty BRE #01363537

Fed Interest Rate HikeIf you are in the real estate market, the recent interest rate hike should not be cause for worry; at least not right now.

Mortgage rates are tied to the U.S. 10-year Treasury. Many experts agree that interest rate changes will take a while to affect the San Diego real estate market. Our market has been characterized by low demand and high inventory.

One prediction I read projects interest rates to be up to 4.6% by the end of 2016. Wil this be a higher mortgage payment?  Yes. Your mortgage may go up a few hundred dollars. You will feel the increase, but it will be not be enough to damage our local real estate economy.

From another perspective, as interest rates rise, there is likely to be a slight cooling off of increasing home prices, thus creating a more sustainable growth market.

To read more about this topic: I refer you to a recent article in the San Diego Union Tribune: http://www.sandiegouniontribune.com/news/2015/dec/18/mortgage-rates-san-diego/

For questions about buying or selling a home in San Diego, please give me a call today at 619-379-8616.

Comments (3)

Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Good morning Cindy,,No significant changes here in Southern California..Tks for sharing

Jan 01, 2016 03:36 AM
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Cindy,
So far the rate hike has been a non-issue. We’ll see what the rest of the year brings. Happy 2016.

Jan 01, 2016 05:32 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Cindy - It will be interesting to see how much interest rates will increase throughout the year, as well as how that will impact home prices and home purchases and sales.

Jan 01, 2016 08:58 AM