How will the Fed’s recent rate hike affect our real estate market? I’ve got the answers for you.

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On June 14th, the Fed raised the federal funds rate by 0.25%. When those types of things happen, people can start to get a little nervous.

Mortgage interest rates have dropped recently to 3.9% in the wake of the recent Fed rate hike. That doesn’t seem like that should be the case, but the federal funds rate and mortgage bond rates don’t necessarily go hand-in-hand.

The economy continues to do well, with unemployment and inflation rates looking good. The Fed will typically raise rates when the economy is doing well, so this rate hike was expected. That will keep growth on a sustainable pattern.

This corresponds with increased sales and home appreciation rates. Interestingly enough, the number of mortgages has actually increased by 2.5% since last year.


While the Fed raising or lowering rates tends to get a lot of attention, I feel that the real estate market is going to continue growing and won’t be affected by the changes we’ve been seeing.

If you have any additional questions or you’re looking to buy or sell a home in our area, please give me a call. I’d be happy to help!