When winter begins its inevitable decline in temperatures, it is often the case that the home selling market follows suit. In fact, you may remember this graph from our October blog post last year:
While this seasonal shift is predictable, there is currently an opposite trend occurring with interest rates. With strong economic growth, very low unemployment, and generally stable inflation, the Federal Reserve raised its rate by .25% in September; the third rate hike in 2018. Additionally, it is projected to rise again before the end of 2018¹:
So, home buyer, what does this mean for you? It means if you are considering or close to buying a home in 2018 or early 2019, it may be prudent to continue the search despite the cold, find a home (during this less competitive market for buyers!), and secure financing and lock in your rate before additional rate changes occur. If you do have questions about financing or interest rates, we have a multitude of fantastic lenders/loan officers that we can connect you with. Often people don’t know what the process is to become pre-approved, or that they may be able to purchase a home instead of renting, and talking to a lender/loan officer is always a scenario where the sooner the process begins, the better prepared a buyer is.
Of course, if you have any questions about the above information or would like to chat about how to get into the “right home” for the holidays, please reach out to the Patriot Realty team at any time!
¹: Torres, Craig. “Fed Holds Rates Unchanged Ahead of Expected December Hike,” http://www.bloomberg.com, (November 8, 2018)