Just yesterday the Federal Reserve announced that they would be raising the key short term interest rate by 0.25%. This is important news as this rate is indirectly tied to mortgage rate trends.
Although this is the first increase since the recession of 2008, the rate hike had been expected for quite some time. In a statement from the Fed, rates are said to increase gradually over the next few years. In short, this means that there won’t be a major shake up in mortgage rates right now but potential buyers may want to act before the end of 2016.
I personally represent both classifications of buyers, those with mortgage financing and clients that are purchasing with cash. Cash offers will not be affected and still have lots of leverage in this market. Potential borrowers are still at historical low mortgage rates, I still see this as a great real estate market.