Last Thursday the Federal Reserve held a committee meeting to discuss, among other things, whether or not they should raise interest rates to assist in stabilizing the US economy. The Federal Open Market Committee (FOMC) consists of 10 members and 4 alternates. In Thursday’s meeting, 9 members voted against raising the rates while one voted in favor of. The primary reason for voting against raising the rates cited by members was the lack of stability in foreign economies, namely China.
So what does this mean for the real estate market? It means buyers will continue to enjoy low interest rates on new loans. It means you can still afford the homes you have been pre-approved to shop for. Also, if you have been sitting on the fence, now is a good time to jump in if you are looking to buy in the near future.
For sellers there is good news as well. With rates remaining the same, you will still have a strong number of buyers shopping the market. Had the rates gone up the number of buyers looking at your home would have decreased as the higher rates would have lowered said buyers pre-approved loan amount. Further, if you sell now, you can capitalize on the low rates when buying your next home.
Bear in mind, the FOMC has two more meetings this year to be conducted on October 27th-28th and the other on December 15th-16th. There is talk that a rate increase is more plausible later this year, with this most likely occurring during the December meeting. So keep this in mind if you are planning on buying or selling your home soon. Timing is of the essence.
Get in touch if you want further information or if you need assistance with buying or selling. Talk to you soon!