How Will Increasing Interest Rates Affect the Austin Market?

As you probably know by now, the Fed increased interest rates at the end of last year. Today I’ll go over what effect that increase is having on our Austin market.

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By now, you’ve probably heard that there was an increase in interest rates at the end of last year. I want to go over the impact of that increase on our market here in Austin and give you an idea of what you can expect as a result in 2017. 

We’ve been told that interest rates will be raised at least three more times in 2017, with some economists predicting a worst-case scenario of a rate of 5% by the end of the year. 

Whenever rates increase, people get a little concerned about how it will affect home sales. According to local economists, there really is no cause for alarm, but the increase may affect the rate at which home values increase. Instead of the 7% to 10% increase in home values we are used to, we might only see a 5% increase. 

Austin is experiencing great job growth right now, but it doesn’t seem to be causing a negative effect on the housing market as consumer confidence is high and unemployment is low.

Right now is a fantastic time to sell your home.

All in all, economists predict 2017 to be a great year for our market. That being said, if you’re thinking about selling a home this year and are wondering when the best time to sell is, the answer is right now. 

Give us a call today and we can get you in contact with our preferred lender who will get you started on your way to financing a home. Additionally, if you have any other real estate-related questions or you’d like to find out how we can ensure your home sale process is as smooth and successful as possible, please feel free to reach out to us. I look forward to hearing from you!