Increased Interest Rate Sign of Healthy Economy

As we all know, the Federal Reserve raised the key interest rate by 1/4% this week. According to RISMedia, “The hike is likely to have minimal effect on the average homeowner, whose monthly mortgage payment would only increase by $25, according to a recent Zillow analysis.”

While $25 a month isn’t an issue for most people, the Reserve is planning on increasing the rates three more times throughout 2017.

Because the Fed does plan on increasing interest rates throughout 2017, realtor.com® Chief Economist Jonathan Smoke suggests, “Rates will likely stay the same until about March so buyers considering a purchase in 2017 may want to consider getting into the market now.”

The most important thing to take away from this interest rate increase was shared by the CEO of HSF Affiliates, Gino Blefari, who said “It’s important to remember rate increases are often the mark of an improving, healthy U.S. economy.”