Rising Market Rates

Hi everyone, thanks for coming back to our real estate video blog!

So, my head has been spinning a little from the recent changes in rates. There have been a lot of articles out about rising interest rates. On June 4th an article came out titled “Will Higher Mortgage Rates Kill the Housing Market? Maybe Not”

What the article says is there is a cyclical loop when it comes to interest rates. It can be hard to know what is actually going on.

Well, to simplify things, as the economy improves it becomes less important to make money cheap.  Interest rates then rise and those rising rates can scare us in the real estate market. However, if rates are rising, it means the economy is improving. While it seems our economy is improving, we do not know if our economy is out of the woods nationally, though.

It’s very interesting as we observe rate movement; things that would appear to put downward pressure on the market (rate movement up) are happening because other things could place upward movement on the market (an improving economy, improving job market and consumer confidence).

What I can tell you as a real estate investor is, if it becomes a little more expensive to buy a property because of rising interest rates, it means the economy is improving. There are many buyers who have the ability to purchase my property if I am a seller.

I’d also like to note that we were at an all-time low in interest rates. Even if rates do increase to 5%, it isn’t the end of the world! I know I probably haven’t answered all your questions about rising interests rates, but I want you to know as we learn more and have more numerical information, we will share it with you!

We are data-driven here and love to research the real estate market! Thank you so much for joining us and I promise to keep you updated on the rising rates. If you have any specific questions please give us a call at 202.290.1313

Thanks for watching! We really do appreciate it!