The Federal Reserve recently raised key short-term interest rates and maintained the current forecast for three hikes this year. The rising rates not only signals a strengthening economy, but it also has specific meaning for the real estate market.
Buy Sooner Than Later to Save on Mortgage Payments
With rates rising, the best time to buy a home and save money on a mortgage is now. Even if you plan to purchase a property with a large down payment, rising rates can have a major impact on what you spend on the home in the long run, especially on multimillion-dollar mortgages.
Real Estate Continues to be a Strong Investment
Rising interest rates also mean that the economy is healthier than it was before the crisis of 2008. In fact, the Federal Reserve foresees the economy growing faster than they projected in December with a growth of 2.7% this year, up from the previous forecast of 2.5%. This is positive news for the real estate industry, particularly for investors.
For professional advice on all aspects of buying or selling real estate, please contact me at firstname.lastname@example.org or (305) 206-4003 or come see me at the Compass office located at 2550 South Bayshore Drive, in Coconut Grove.