Impact of 2017 Interest Rates

After the Federal Reserve met in November, there has been valid concern in regard to the impact of rising interest rates in the new year. Are these gradual increases going to heavily impact the 2017 housing market?

A rate increase will cost prospective homebuyers more when they seek a mortgage. Interest rates for a 30-year fixed-rate loan are currently hovering just above 3.5 percent on some websites. While the Fed doesn’t directly control consumer interest rates, the quarter-point hike and the directional tone of “continued gradual increases” in the Fed’s policy statement will move mortgage rates higher.

“We anticipate that rates may be 4.5 percent by the end of 2017,” said Lawrence Yun, chief economist for the National Association of Realtors (NAR) “and that home prices will also march upward by 4 percent.”

But Yun said even at that level, the market is “still favorable” to homebuyers. He expects 2017 will be a “decent year,” with home sales about equal to 2016.

It will certainly be more favorable to home sellers, who will see increased prices. That could prompt more homeowners to put their properties up for sale in what has become an increasingly undersupplied market.

Despite shifting rates, the 2017 housing market is still looking strong with motivated home owners and increased inventory.

If you are looking to buy, sell, or invest in real estate in the new year contact Arlo at (858) 405 0063.

Upon talking to Arlo, I realized that he is very knowledgeable and humble!

Before speaking with Arlo, I received really poor customer service at Carlos Gutierrez - Berkshire Hathaway. I was so upset...
Blue Chip Realty Group Testimonials
5.0
2016-06-08T20:16:23+00:00
Before speaking with Arlo, I received really poor customer service at Carlos Gutierrez - Berkshire Hathaway. I was so upset that I thought all the reviews about realtors in San Diego was phony. Upon talking to Arlo, I realized that he is very knowledgeable and humble! When my mom is ready to sell her house, I will definitely give him a call. He was able to answer my questions and did not make me feel "put down" in any way. In my opinion, this is how to do business especially when it comes to real estate. I'm still so mad at the other company but he helped ease some of that frustration. Thank you.

Arlo explained the benefits of a short sale and also explained the other options. After listening to our options, we decided a short sale would be best.

Arlo and his team helped my family out of a difficult situation last year. We refinanced at the peak of...

Tony E.

Blue Chip Realty Group Testimonials
5.0
2016-06-08T20:11:11+00:00

Tony E.

Arlo and his team helped my family out of a difficult situation last year. We refinanced at the peak of the market, and needless to say, were upside down by about 50%. Arlo explained the benefits of a short sale and also explained the other options. After listening to our options, we decided a short sale would be best. It was a tough decisions, but it was obvious Arlo has helped many people before us because he was very compassionate throughout this tough time, he even sent us a handwritten card in the middle of the listing period. Arlo is also partnered up with two real estate attorneys, which can be a huge asset when it comes to legal questions.

Arlo is the consummate professional and takes his work very seriously. I will gladly recommend him to anyone looking to sell high end real estate in La Jolla or San Diego.

Arlo Nugent and his Team helped sell my home in La Jolla in 2010. He used video marketing, which at...

Jeff M.

Blue Chip Realty Group Testimonials
5.0
2016-06-08T19:54:33+00:00

Jeff M.

Arlo Nugent and his Team helped sell my home in La Jolla in 2010. He used video marketing, which at the time no other agents seemed to be doing, and actually found a buyer in China! I was hesitant at first, but the buyer checked out and we had a very smooth transaction. Arlo is the consummate professional and takes his work very seriously. I will gladly recommend him to anyone looking to sell high end real estate in La Jolla or San Diego.

Arlo was very patient, explained all of my options, and ultimately negotiated very favorable terms for us! Well done!

Arlo helped relocate me and my family to Coronado 2 years ago. I was probably not the easiest client to...

Tammy H

Blue Chip Realty Group Testimonials
5.0
2016-06-08T19:53:41+00:00

Tammy H

Arlo helped relocate me and my family to Coronado 2 years ago. I was probably not the easiest client to deal with, but Arlo was very patient, explained all of my options, and ultimately negotiated very favorable terms for us! Well done!
5.0
4

La Jolla

An up scale beach community in San Diego that, while technically within the city limits of San Diego, is considered by many to be its own city in many ways. La Jolla is home to the University of California, San Diego campus, beautiful beaches, and gorgeous scenery

Read More

Pacific Beach

PB as it is known as by local residents, is home to one of San Diegos more developed night-life scenes, with a great variety of bars, eateries, and clothing stores.

Read More

Coronado

Coronado is a picturesque resort town in San Diego County in Southern California. It is situated on a peninsula just across the San Diego Bay from Downtown San Diego and offers quiet beaches, lovely bay scenery, and sights such as the historic Hotel del Coronado

Read More
 
Translate »
Facebook
YOUTUBE
Instagram
SOCIALICON
SOCIALICON