Today the FED raised the overnight lending rate by .25% (from .75-1.00%) Mortgage rates have already adjusted for now to this expected increase.
“With this increase well anticipated by most markets, Keller Williams does not expect any dramatic change in the current path of mortgage rates. Rates will likely continue to slowly rise this year barring a change in the economic situation,” said Ruben Gonzalez, staff economist, Keller Williams, in a statement.
“While higher mortgage rates will likely have some downward impact on demand, housing remains very affordable by historic standards and we anticipate another year of healthy home sales despite an environment of increasing mortgage rates,” added Gonzalez.
This will likely mean interest rates will continue to rise in the near future. Not really feeling the impending over abundance of buyers ready to buy in many markets, do you think this will be a hinderance for real estate prices? We will need to have a continued increase in salaries and continued job creation in all sectors to drive both steady demand with expected price increases.
Real estate on the NC Outer Banks is much like buying a Ferrari, everyone wants one but that Chevrolet Suburban really is more practical. We are a following market to markets to the north of us including Virginia, Maryland, Delaware, Pennsylvania, New Jersey, New York, Connecticut up and down the east coast.
When those folks feel as though they are getting a little more money for their homes, then they are thinking about the beach house. More to come......stay tuned.