FED just raised short-term interest rates!
CEO of Wyse Home Team Realty Ron Wysocarski discusses the news on the recent Federal Reserve interest rate increase. The FED announced on Wednesday, May 4th, 2022 that they will be raising short-term interest rates by 0.50% in an effort to curb inflationary pressures and stabilize the American economy. This marked the most aggressive rate increase made by the Fed in almost 22 years.
Back in 2000 during the last aggressive interest rate increase the rate change only lasted for roughly one year. Each year following it decreased between a quarter percent to one whole percent. Interest rates in 2021 were the lowest they've ever been in the last 30 years.
The market is still trying to understand what this news means for the future of interest rates and inflation. Many experts say that this does not mean that we are in for an era of high-interest rates, but it is a sign that the Fed is trying to combat the rapid inflation of the economy. While in 2022 the rates may be slightly higher than the previous year, they could possibly go down. One thing is for sure, rates generally go down over a period of time.
A 0.50% interest rate increase should not stop you from investing in a new home, it might not even impact your purchase as much as you'd think. If you're renting a house it's essentially like paying 100% an interest rate as rentals cannot be investments. Purchasing a property will always have turnaround benefits whenever you go to sell, which is why owning versus renting is always a better way to save your money.
If you're looking for a new home, make sure to contact the Wyse Home Team Realty today. We are the leading real estate experts in the East Coast Florida area and can help guide you through every step of your property search.
Though this may seem like bad news for those who are considering buying or selling a home, it actually offers new opportunities for real estate investors and homeowners alike. At Wyse Home Team Realty, we understand the market and can help you navigate the ever-changing landscape of the Volusia/Brevard county real estate market. We're here to help you understand the current market conditions and develop a plan that meets your unique needs.
If you're thinking about buying or selling a home in the Volusia/Brevard county areas, now is the time to act. Contact Wyse Home Team Realty today to schedule a few home showings.