Interest Rate On the Rise AGAIN??

[Zachary McDonough]

About 30 mins ago, the NY Times just uploaded an article that may affect interest rates.

Nationally, investors are gearing up for another rate hike by the Fed. Why so? The Fed is looking at the labor market to determine whether the economy needs cooling or not. Good job market data is interpreted as more reason to raise rates.

Well, well, well. A June payroll report showed more wage growth, which would solidify that the Fed will raise rates again.

Do I know with full certainty? Definitely not. However, over the past year, that has been the trend.

So...what does that mean for buyers and sellers?

1. Real estate affordability will not improve, decreasing buyer demand.

2. Decreased affordability will yield less inventory since sellers will sit tight with low rates.

3. Continued stalemate in the market.

In southern Maryland, buyers and sellers will still need to move. We have a very insulated job market due to government work, which greatly benefits the real estate market.

Buyers, I know the rates may suck. I urge you if you can buy real estate, do it! Buying is a personal decision. It's not everyone's time all the time to buy or sell. But locking in a high rate now will protect with the rates tumble and the prices soar.

Sellers, prices are up 3% YoY according to the SMAR's June Market report. It may be the time to sell for you but adjust your mindset. Days on the market are up as well as prices.

Hope you enjoyed my take. Here's the link to the NYT article: https://www.nytimes.com/2023/07/07/business/economy/june-payrolls-report-fed.html