If you’re in the housing industry, you’re no stranger to the fact that interest rates have been steadily rising in recent years. Rates are still near all-time lows, but in just the past two years, we’ve seen nearly as many Fed rate hikes as there are Fast & Furious sequels. And there doesn’t seem to be a sign of letting off the throttle any time soon.
As the Fed Funds Rate has gone up, mortgage rates have followed suit, which has started to slowly erode homebuyers’ purchasing power. Let’s take a look at how we got here, what to expect next, and how to respond to the changing climate of the housing market.
The important thing to remember is that rates are still at historic lows, but that doesn't mean it's the time to sit on the sidelines. It's important to educate buyers that the longer they wait, the less purchasing power they may have. Taking action now may help them snag their dream home while it's still within reach!
 Board of Governors of the Federal Reserve System, Open Market Operations  The Balance, Fed Fund Rates History With Its Highs, Lows and Chart