Will Interest Rates Rise In 2017 And What Will It Do For The Real Estate Market?
This Article On Will Interest Rates Rise In 2017 Was Written By Bob Vogel NMLS 1446953 of The Gustan Cho Team at CrossCountry Mortgage NMLS 3029
When it comes to the current housing market, no one can, without absolute certainty, predict the values of homes:
- In many parts of the country such as many parts of California and Florida, home prices are skyrocketing and homes are selling the minute they become listed.
- However, nobody has a crystal ball on where home prices are going.
- Things that go up can easily come down and vice versa.
- What does the near future hold with home prices?
- Are home prices going up, or are they going down?
- While financial analysts and industry experts can forecast events by using past data, they cannot be certain of future outcomes.
- With that said, there is much speculation on what the Federal Reserve is going to do to interest rates in 2017.
- Interest rates is a great indicator of housing purchases.
Brexit & The Election Of President Donald J. Trump & Interest Rates
Many potential home buyers are concerned whether will interest rates rise in 2017:
- With Great Britain’s vote to leave the European Union on June 24, 2016, the notion of raising interest rates is unlikely.
- According to Freddie Mac, interest rates are likely to go up to at least 6% by the year 2020.
Will Interest Rates Rise In 2017 Weak Job Growth
Its no secret that the US job market is tied to the housing market.
- The Federal Reserve has indicated that slow job growth will halt any interest rate hikes.
- Additionally, the Federal Reserve does not historically raise interest rates right before an election.
So Should You Buy A House Now Or Later?
Interest Rates has remained at historical lows for over half a decade and never in history has interest rates been as low as it has been for so long:
- The Great Recession of 2008 crushed the housing market where many homeowners who had equity in their homes and relied on that equity for their retirement saw their equity diminish literally overnight.
- Millions of homeowners saw their mortgage balances higher than the value of their homes where some decided to bail on their homes because they could not sell their homes.
- Others whose mortgages were upside down never ever dreamed that they would ever see the daylight of their home value ever increasing and took it for granted that they were stuck in their homes for the rest of their lives.
- Areas of Florida, California, and may other parts of the United States have seen the value of their properties plummet more than 50% in value.
- Fortunately, starting in 2010, the housing market slowly started to recover and by 2013, home values in many parts of the country such as Florida and California were skyrocketing by double digits every year.
- Many potential home buyers were on the sidelines to see if interest rates will fall further, however, while waiting, home prices were appreciating and many who were eyeing on a certain type of home have missed the opportunity to purchase that home.
- Many areas of Florida such as the following
- Miami-Dade County
- Broward County
- Palm Beach County
- Homes are selling the minute the home is listed on these particular counties of Florida on the MLS.
- If you are going to buy a home, now is the time.
- Interest rates are still reasonable and market prices are still well below 2008 trends, prior to the bursting housing bubble.
- While inventory remains low, buyers are still in a great position to negotiate good terms on a home purchase.
About The Author: Bob Vogel NMLS 1446953 Of The Gustan Cho Team at CrossCountry Mortgage NMLS 3029
Robert Vogel III NMLS 1446953 is a licensed loan officer with The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 3029 and a senior writer and partner with Gustan Cho Associates and is armed with decades of accounting and finance knowledge.
- Bob Vogel has an MBA and a Master’s Degree in Accountancy, and has advanced knowledge of business taxation.
- Bob Vogel’s passion is helping others and being armed with her extensive accounting experience and being an expert in real estate and finance.
- Bob will be partnering up with Gustan Cho Associates and will be a full service mortgage banker specializing in FHA Loans, VA Loans, USDA Loans, Conventional Loans, FHA 203k Loans, Reverse Mortgages, Jumbo Mortgages, Non-Conforming Loans, and Commercial Loans.
- Bob Vogel’s specialty will be originating mortgage loans with no lender overlays.
- Mr. Vogel works for a five star national full Eagle Fannie, Freddie, Ginnie Mae Direct Lender licensed in 50 states with no overlays and a policy to close loans in 21 days. If you have any mortgage lending questions and are considering a Home Purchase and like to go over case scenarios and know more about the area, feel free to contact Bob Vogel at 8479529-7920 or you can email Bob Vogel at email@example.com.