Report: Interest rates on the rise. What does that mean for you?

Specifically, in St. Louis, the real estate market is hot right now — but that doesn’t mean it’s going to stay that way forever.

Of course, the market always fluctuates and especially here in the Midwest, it tends to go with the seasons. We’re in the midsts of a stellar seller’s market right now, but that can and will change as the end of summer comes onto the horizon. It’s not here yet, but fall is right around the corner too, and with it, a change in market conditions is sure to appear as well.

And that’s not even considering the recent news in interest rates.

On Wednesday, June 14th, it was reported that the Federal Reserve planned to hike up interest rates by a quarter point. The bigger news, though, was that another hike seems to be expected in September, and there’s even a chance that rates go up in December of 2017.

Patti Domm of CNBC reported the followingPatti Domm of CNBC reported the following:

While the market is skeptical of a second rate hike before year-end, 54 percent expect a September hike and 21 percent see a December increase. Another 11 percent expect a rate hike sometime between July and November.

It’s worth noting that this report doesn’t guarantee an increase in interest rates, but CNBC’s survey included “39 of the top U.S. money managers, investment strategists, and professional economists” — and if they don’t know what’s going on with our economy, nobody does.

What does this mean for the real estate market? Specifically, if you’re planning on buying a house and taking out a loan to do so…it’s time to seriously consider taking the plunge and making your move.

At the time of this writing, a 30-year fixed rate checks in at 3.875%. A 30-year fixed FHA loan clocks in at 4.500% and the 15-year fixed rate is 3.375%. Note: You can check this website for current rates.

If and when those rates go up, you’ll be wishing you made the move a bit sooner, so don’t hesitate!

Thinking about buying a house? Is the timing right for you? I specialize in residential real estate in St. Louis and its surrounding areas. I can immediately start sending you potential options to check out and when you’re ready, I’ll connect you with a lender and will start getting you into houses to see them in person. You’ll be in your NEW HOME in NO TIME!

Interested in working with me? Call or text me at (314)-620-9014 or email andrewkulha@kw.com

You can also find more info at SELLinSTL.KWRealty.com

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