There is a lot of talk in the news now about the Federal Reserve deciding to inch higher on key interest rates, which will eventually translate to slightly higher mortgage rates.

While we in the Real Estate Industry, or potential home buyers may view this with some concern, we have every reason in the world to be happy about this news.   Yes, a quick glance at the change shows that new buyers’ monthly mortgage payments may go up by a few dollars, but remember, rates were reduced to unprecedented low rates to help bring our economy out of the worst economic environment since the Great Depression.  And the good news is, IT WORKED!  Real estate sales are robust.  Unemployment is incredibly low.  The Dow Jones is at an all time high.  Inflation is essentially flat.  And as rates inch higher, lenders are more inclined to loosen lending constraints and offer more programs to borrowers.

So while of course a new home buyer might want to buy a home before rates inch up, there’s no reason for alarm.   It looks like we will still be at incredibly low rates even after the Fed’s actions translate to the mortgage market.  And we need to remember that the mortgage interest rate is not the only factor encouraging a robust real estate market.  We are good, and have every reason to celebrate this sign of recovery!

Oh, and PS: I bought my first home in 1995, and with perfect credit, was very happy to have an interest rate of 7 7/8.  So forgive me if I don’t pass the tissues as rates return to the 4’s or more.  🙂

O’Keeffe and McCann, located in Goshen, NY, and the Hudson Valley, are available for appointment for your legal needs. Please give us a call at 845-615-8500.