The Fed and Interest Rates

When the Fed began to raise interest rates earlier this year, it was thought they would level off by the end of 2022 and remain consistent through 2023 before decreasing again. But, unfortunately, inflation is far from leveling off, and it is projected that the Fed will have at least two more increases of .75% before tapering off to .5% increases or .25% increases.

According to FHLMC, interest rates will stay in the 5% to 6% range for the next three to four years. Once this becomes accepted, more sellers will re-engage in listing their properties, and buyers will return.

A recent article from the New York Times drew parallels between our present inflation situation and the inflation of the 1980s.

It is important to note from this comparison that those who bought or sold homes during the 1980s were among the most successful and saw the most appreciation in their investment, reinforcing that real estate is one of the safest hedges against inflation. Whether your clients are buyers who were shut out of the market over the last two years or sellers who can still take advantage of the low inventory on the market, now is the time to make a move!