If you’re someone who reads the paper or watches the news, you’ve probably heard about Fed hikes and interest rates. If those terms don’t ring a bell, no worries! Here’s what you need to know:
1. The Federal Reserve raised interest rates at the end of September for the third time this year.
2. As a result of the rate hike, the 30-year fixed mortgage rate jumped to 4.88%, the highest it’s been since 2011.
3. Interest rates are still historically low, but those looking to buy should think about locking in a rate soon. Financial institutions are predicting rates of 5% or higher by the end of 2019.
4. Rising interest rates means sellers may need to adjust their expectations on sale prices as buyer’s budgets decrease to compensate.
If you have questions on buying or selling a home, how interest rates affect you, or want to learn more about housing in Austin, please reach out!