Is It Time to buy? The Fed Raised Interest Rates For The Third Time This Year

Dated: 09/26/2018

Views: 20

The Federal Reverse raised interest rate for the third time this year, pushing rates up by .25% to 2.25%. Strong economic growth and a booming job market have led to the eighth rate hike since 2015, as the Fed tries to rein in the acceleration of inflation.

A growing base of experts expect the Fed to continue raising interest rates incrementally as long as employment growth keeps surging inorder to prevent the economy from overheating. With today's rate hike, the Fed has raised the target range for the federal funds rate to 2% to 2.25%, according to its statement.

According to Chief Economist Mark Fleming, who says the strength of the economy should mitigate any negative effects on homebuyer demand due to rising interest rates.

“The gross domestic product grew at a 4.2% annualized rate in the second quarter of 2018, the strongest pace of growth since 2014. The economy has added jobs every month for 94 consecutive months, producing the lowest unemployment rate since 2000. Additionally, the housing market is facing a wave of Millennial first-time home buyer demand. In fact, more than 50 percent of all homes purchased in the second quarter of 2018 were bought by first-time home buyers,” Fleming said.

“The boost from the strong economy and first-time home buyer demand should overcome any downward pressure from rising rates on home sales. While the pace of sales may initially slow, home buyers typically adjust to the new rate environment,”

Blog author image

Gary Ricco

Known as Ricco Sells Homes, Gary’s branded his passion for helping Buyers and Sellers achieve their Goals. As a Veteran and retired Police Officer he has been helping Military Families and 1st respo....

Latest Blog Posts

Where Are Home Values Headed The Next few Years?

There are many questions about where home prices will be next year as well as where they may be headed over the next several years to come. We have gathered the most reliable sources to help answer

Read More

Using Your VA Loan Benefits When Changing Duty Stations.

One of the unique benefits afforded to military personnel is access to the Veterans Affairs Home Mortgage Loan program. This program offers tremendous mortgage benefits to active-duty,

Read More

Advantage of buying a home with Cash in Today's Sellers Market

If you are buying a home with Cash in the Tampa Bay Area, you may be able to buy that home at a large discount, move in sooner than the typical escrow time. (15 days Escrow Period)Some home sellers

Read More

Is It Time to buy? The Fed Raised Interest Rates For The Third Time This Year

The Federal Reverse raised interest rate for the third time this year, pushing rates up by .25% to 2.25%. Strong economic growth and a booming job market have led to the eighth rate hike

Read More