How Interest Rates Impact Orange County

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Although interest rates increased a quarter of a percentage, we predict 2016 may be a carbon copy of 2015. It all depends on the Federal Reserve since they’ve recently announced they’re doing away with historically-low interest rates. This is the first increase in nine years!

Additionally, the Fed hinted at more increases in 2016. It could be as many as three or four. Long-term mortgage rates are not immediately impacted by changes in short-term rate. However, multiple increases will deeply impact the Orange County housing market.

Like last year, buyers will be lining up to take advantage of the end of the low rates. The Fed will most likely make changes after the busiest real estate season of the year. We expect the seller's market we’re experiencing now will shift towards a more price-oriented market during the second half of the year. Pricing will be crucial for sellers later on this year.

If you’re thinking about buying or selling a home, send me an email today! I am happy to serve your real estate needs.