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    Are Rates Going Up Again?!

    Everybody’s talking about interest rates. Obviously, they’ve gone up a lot in the last year. And we think last year there was a concern that once they started to rise it was going to dramatically affect property values, etc. And turns out it’s still a seller’s market. So we wanted to share some information regarding that.

    At the conclusion of the Fed’s May meeting, the Fed did two important things this time. First, it raised the federal funds rate by 25 basis points as expected.

    Second, It also indicated that it will not increase rates in future meetings throughout the rest of 2023 unless absolutely necessary.

    Unless absolutely necessary. So as long as those inflation numbers keep
    looking good, which we expect them to 
    since these are trailing
    numbers, we should be in good shape for no more rate increases. 

    But inventory is still extremely low and we’re still seeing multiple offers on well- priced properties. This means it’s a wonderful time to be a seller and if you’re a buyer… if rates dip a little bit, even every quarter point that rates dip, tens of thousands of new buyers are coming into the marketplace. Which does what? It just increases your competition.

    It’s all supply and demand issues right now. A lot of people who have a 3% rate don’t want to sell, and they’re kind of hunkering down. So as a buyer, we feel that if you find a home that you love and you can afford the payment at the current rate, do it because we’re not really seeing prices coming down anytime soon.

    Click here to read the full article from National Association of Home Builders Discusses Economics and Housing Policy

    We hope this is helpful. Reach out to us if you want to know what your home is worth in today’s market or if you’re a buyer and want to know how to get your offers accepted.