Rising Interest Rates and what they Mean

Ben Bernanke Fed Chairman

Ben Bernanke Fed Chairman

As a Citizen 1st of our great country and Real Estate/Mortgage Professional I have a lot of mixed feelings and emotions about the Rising Interest Rates and what they Mean for our Country! When interest rates begin to rise that means the economy is getting stronger as a whole and who wouldn’t be in favor of that? I know I AM!!! But as your start to peel back the layers of this onion don’t be surprised when your left teary eyed over the rising interest rate for your home mortgage loan.

As most people know unless you have been hiding under a rock since 2008 our country has been in a deep economic recession! In which the Federal Reserve or the FED and its chairman Ben Bernanke have been pumping money into the market place to artificially depress interest rates to the tune of $85 billion a month with a B! Making it cheaper to borrow money which in-turn helps stimulate the economy. It’s a fairly simple concept really… The cheaper it is for someone to borrow money the more likely they will borrow. This helps keep money circulating and is the oil, grease & coal for this money train we call the US economy! Without it we could be the biggest & nicest train on the tracks but we wouldn’t get far without the oil, grease & coal.

As for the Miami & Nationwide Housing Industry which is my main area of expertise I am concerned about the Rising Interest Rates and what they mean for all of us! The housing market for many areas across the country have stabilized and even in some select markets have seen a steady increase in home values & purchase prices over the last several months. Now there are many factors that contribute to this but none more so than the low affordable interest rates that home buyers have all enjoyed over the last 18 months. What we know now is that interest rates are beginning to go up… Just ask anyone who is been trying to buy a home over the last 45 to 60 days where the interest started when they were first pre-approved and where the interest rate is at now! A traditional 30 year mortgage is now is around 4.5% which is up from 3.25% just a few months ago. And with the economy getting stronger interest rates are likely to keep rising.

Now I am forever optimistic and remain a glass-half-full person… but my fear is the FED will allow rates to increase too rapidly too soon which in-turn will stymie the little recovery and progress we have made in the overall housing industry since the great collapse of 2008! My hope is the FED will realize this and continue to take the necessary steps to keep rates low which makes more homes more affordable to more people and keeps the resurging housing market on a steady and upward trend that matches our growing economy!

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Miami Kendall Home for Sale Miami Kendall Home for Sale

 

 

 

 

 

 

Miami Kendall Home for Sale Miami Kendall Home for Sale Miami Kendall Home for Sale Entrance to Master family room 2 family room Miami Kendall Home for Sale layout living room 2 living room master office or bedroom upstairs hall yard