Do you feel like you are holding your breath until the next FED meetings? Many people are interested to see if the FED will telegraph rate increases, which can have a domino effect on the real estate market prices and the economy of our nation.
At DUFFY Realty, we keep our ears open to new information about anything that might impact your future home purchase. Our team is always working to stay updated on interest rate changes because we know that these things can make it harder or easier to get the financing needed to buy a home.
Anticipated Changes to Interest Rates
At this point, it is anticipated that the Federal Reserve will forego an increase in the interest rate. These decisions are usually based on the economy, because they know that a rate increase might slow down spending nationwide. At the same time, it is important to keep your mind open since there is a possibility that rates will increase at some point or another.
If you want to avoid rate increases in the future, then right now might be the best time to lock in your mortgage on a new home purchase. Historically, the rates have been low for a while, which means that they will start moving up eventually to balance out supply and demand.
Telegraphing Upcoming Changes
What does it mean that the Federal Reserve will “telegraph” future plans? In the past, the financial markets have responded poorly to surprises. If something happens unexpectedly, then the markets have suffered.
The FED doesn’t want to cause waves in the financial markets, so they send out a “telegraph” which is a message notifying everyone of upcoming rate increases. Then, when the higher rates go into effect, they won’t cause big disturbances in the markets.
Interest Rate Changes during Presidential Elections
Historically, the FED doesn’t raise interest rates during a presidential election. This time can be a bit tumultuous as the nation is preparing for the upcoming vote. So, the current political climate will help to maintain rates at a lower level. But, it is possible that we might start seeing some changes early next year after the new president moves into the Oval Office.
The markets have been spooked since the big drops that happened earlier this year. Since the U.S. economic data is weaker than it has been in the past, the Federal Reserve will stay proactive to manage the rates in a way that won’t disrupt the lives of average people like you and me.
At DUFFY Realty we know that your family finances might be impacted by future interest rate changes. If you want to maximize your buying power, then we can help you find a home before the interest rates change in the future. Contact our team to learn more about our effective home buying process: (678) 318-1700