Interest rates can only go up from here, which means there will be a downward pressure on home prices in our market moving forward. 

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Today we’re answering a question from Andrew, who asks, “How are interest rates going to be impacted moving forward on the sale of homes?”
 
Andrew is referring to the fact that at the most recent meeting of the Federal Reserve, they chose not to raise interest rates. Coming out of that meeting, though, we found in the notes that they were pretty split on whether to raise them or not. This makes me confident that they will raise rates at their next meeting.

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Because interest rates are still low, now might be the time to make your move.
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More importantly, though, economists are saying that from here, interest rates aren’t going back down. They can only go up. When interest rates shift in the market, a 1% shift behaves like a 10% change in the price. A 1% shift in the interest rate reduces buyers’ buying power by 10%. Over time, that is going to have a downward effect on home prices. This means you should be prepared for a downward pressure on home prices moving forward.
 
That being said, because interest rates are still very low, if you’re considering refinancing, now might be a good time to do it. Also, if you’ve been considering moving in the next two years, you might be better off jumping the gun and doing it now. 
 
If you have any questions or other real estate needs, don’t hesitate to reach out to us by phone or email. We look forward to helping you!