Rates are rising

The Federal Reserve Tuesday raised interest
rates again, boosting the federal funds rate by a quarter percentage point to
2.75%.

While the mortgage markets
already increased their rates anticipating the Fed action, similar increases
throughout the year could impact real estate
sales.

“We see the Federal Reserve
continuing to raise rates for the next five meetings,” says Lawrence Yun, senior
economist for the National Association of
Realtors.

…When the cheap money
subsides, housing prices may begin to subside.

The Federal Reserve Tuesday raised interest
rates again, boosting the federal funds rate by a quarter percentage point to
2.75%.

While the mortgage
markets already increased their rates anticipating the Fed action, similar
increases throughout the year could impact real estate sales.

“We see the Federal Reserve
continuing to raise rates for the next five meetings,” says Lawrence Yun, senior
economist for the National Association of Realtors. “The cycle ? will
slowly impact the mortgage rates.”

Rismedia

In short, as rates go up, borrowed money
costs more. When the cheap money subsides, housing prices may begin to subside.
Only time will tell.

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