The Federal Reserve recently increased interest rates, but how will this affect real estate here in Portland?
First, keep in mind that the Fed rate and mortgage interest rates are not tied together. In fact, mortgage rates weren’t impacted at all by the Fed’s rate hike in March.
Secondly, remember that interest rates are still at historically low levels. Even if the Fed raised rates again this year and mortgage rates followed suit, we would still have historically low averages by several percentage points.
The third important point to consider is that home builder confidence is at a 12-year high. The Home Builders Association expects regulations to be loosened in their industry, meaning lower building costs, which could slow the growth of home prices.
In short, if you’re selling your home, you will profit thanks to the shortage of inventory in our market—especially here in Portland. As a buyer, you’re still in a great position to lock in a historically low interest rate for your new home.
If you have any other questions about our market or you’re thinking about buying or selling a house, give me a call or send me an email. I’d love to hear from you!