After a rocky winter, it looks like the economy is once again on track for growth. Experts predict that the Fed will probably be raising the benchmark rate in either June or July. This is a development of interest for those looking at the Silicon Valley real estate market. Mortgage rates will almost certainly see small increases as well. It’s tricky to predict what a small rate increase will do to Silicon Valley home selling. The market has enough demand that it might not have a noticeable effect, but it could slow the market down a bit, as people have more challenges getting a mortgage at a good rate. This might be good news for buyers if it does indeed decrease competition a bit.
Rising Rates Have Uncertain Effect on Silicon Valley Home Sales
All real estate is local, of course, and Silicon Valley real estate is in an area of great economic growth. In the rest of the country, consumer confidence seems to be increasing, after a tough first quarter. In April, retail spending increased at the highest rate in about a year. The Federal Reserve Bank of New York is predicting that growth in the second quarter will be about 2.9 percent, which also represents the most significant economic gain in a year.
Please contact our office for more information about how a predicted rate hike will affect your plans for buying or selling.