Today, the Federal Reserve decided to keep interest rate at zero, which bodes well for San Diego home sales and the Carlsbad real estate market. Weakening global economy was the prime impetus for not moving the needle.
However, a rate hike is definitely expected by year end, according to Yahoo News:
Nevertheless, 13 of the 17 Fed officials at the meeting indicated they expect a rate hike by the end of this year, most of them pointing to a 0.25-0.50 percent range.
Our advice to anyone thinking of buying a home in San Diego in the next year would be to step up the property search before an inevitable rise in mortgage interest rates. So many have become complacent in believing mortgage rates will remain forever low. That’s not likely to be the case.
My parents were in real estate and bequeathed to me an old mortgage calculator book where interest rates did not go below 7 percent. They never dreamed we would see the rates available today and I am convinced real estate agents in the future will one day look back at our current rates and shake heads in disbelief.
I’m no fortune teller–nor a pushy salesperson, but I am encouraging family, friends and clients to move ahead with their home purchase if mortgage rates are of importance to them.
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