Will they, won’t they hike the rate? The September session of the Federal Reserve Board takes place on September 17th and with the potential for a rate hike looming, the forecasting is going wild. Here are some great insights from varied sources on how it would affect real estate and whether or not the rate hike will occur.
Trulia Blog – 3 Real Estate Effects of an Interest Rate Hike
To put this potential change into perspective, Trulia notes the important points to factor into the link between an interest rate hike and real estate. They expect that you may see an increase in people trying to get in under the bell on the current rates, pushing for more compacted deadlines and after that fewer people being able to afford to. With people making more money on their savings, they may be less interested in moving that money around.
CNN notes “Most experts expect a Fed rate hike” but then goes on to outline some possible reasons why that won’t happen. Among the indicators they cited are weak wage growth, the suppression of oil prices, the current financial upheaval in the Greek and Chinese economies, and the rates of unemployment and inflation.
CNBC points to the sluggishness of new homes as identified by the number of new homes built so far in 2015 against the 20-year average and the falling prices of new homes in the last 7-8 months. Based on this, they feel that the Federal Reserve will be forced to maintain current rates to avoid hobbling this section of the economy.