Some people cringe at the news of a rate hike, but that’s not necessarily a bad thing. A rate hike is typically done to maintain a healthy economy and to help keep inflation at bay. The economy has been showing positive signs like low unemployment, a healthy and steady real estate market, and increased consumer spending compared to just eight or so years ago.
The feds rate increase was one quarter percent or .25%. Just enough to make sure that the economy, and it's main factors, hold steady for the near future. The Fed committee is predicting gradual increases in the federal funds rate over the next year, so if you are thinking of buying real estate, now is probably the time. Even with the increase, rates or still very attractive and still less than most other countries. The Fed's outlook on the immediate US economy is positive.
Over the past few years, Americans have been adapting to other political and economic changes like universal health care, an upcoming presidential race, and many other political issues that affect our society, some directly and some indirectly. This interest rate increase is just another factor in predicting and helping maintain our healthy economy. We certainly do not want to go through what we did go through just 10 years ago.
So if you or thinking of buying a home, just remember to put down a healthy down payment, shop reputable lenders, get the best rate you can, and when you see that equity in your home, don't jump the gun so quickly by pulling that equity out.
Even with the Fed rate increase, mortgage rates will most probably stay just about the same, so don’t stress to much over mortgage rates right now. Here in the Miami and surrounding areas in South Florida, we had a healthy list of available properties for sale. Is it a buyers market? Is it a sellers market? Well, we feel that it's both. If a property is priced correctly, it will sell any reasonable amount of time. If you are a buyer, then you should expect not to have to compete with 10 other buyers on a single property. Negotiations are much more common than they were just a few years ago, and the new regulations for lenders and appraisers has helped protect consumers, both buyers and sellers of real estate.
Contact us with any questions you may have about buying property in the Miami Fort Lauderdale and surrounding areas, and also if you were looking for reputable lenders, we can recommend A few for you to start interviewing.