You probably know that interest rates for home mortgages have been steadily increasing over the course of the past two years. During that period, the Federal Reserve has announced incremental interest rate increases at nearly every meeting.
At the most recent meeting in late January, the Open Market Committee signaled a pause in interest rate increases. Below is an excerpt from the statement at the end of that meeting.
“the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes. In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes”.
Most financial experts read this as a pause in rate increases over the coming months. Nobody knows, at this time, how long the pause will last. What seems certain however is that given the strong state of the economy, we can expect rates to continue their upward trends in the not too distant future.
This welcome respite from persistent rate increases provides a window for anybody who is considering the sale or the purchase of residential real estate. With the spring selling season only weeks away, it’s likely that buyers will want to take advantage of this pause so they can capture a low interest rate before they begin rising again. Many who were on the fence, will decide that this is the time to act. Sellers are likely to find a strong selling market due to the influx of buyers who are ready to pull the trigger.
So, if you have been waiting for the market to improve before buying or selling a home, this may be your opportunity. This window won’t remain open indefinitely.
If you need help with the numbers or projections, Primex is ready to help. Knowledge is power, and Primex is ready and able to provide the information that you need.
Pick up the phone and call Primex at 301 468-5600 if you are considering a move of any kind. We’re happy to help and your call is always welcome at Primex.