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As most of you know, interest rates are extremely low right now. The Fed is meeting in July, and from what we hear they’ll be talking about raising interest rates. Let’s talk about the opportunity that presents.
Inventory levels are also extremely low, meaning there aren’t very many houses on the market for people to choose from. That being said, there are still great deals to be had. What that means is that you can get a great price for your home at this time and when you purchase your new home, you can get a great deal on your 30-year or 15-year fixed financing because said rates are so low.
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When the Fed does raise interest rates, it means that the dollar that people have to spend won’t go as far because the money that they’re borrowing is more expensive. We’ve had a nearly six-year run up to the current market since it took a dive in 2008-09, and since markets work in cycles, we’re probably due for a slight dive again. Here in Minneapolis and the Midwest we’re probably not looking at anything substantial, but if interest rates do go up it’s going to cause home values to slightly dip. You shouldn’t worry about this, though. It’s what happens naturally throughout time.
Low interest rates and inventory levels mean we’re likely due for a slight market dip.
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If you have any questions or concerns, please don't hesitate to reach out to me!
