Joe Moshé Says the Federal Reserve’s Rate Hike Will Move the Housing Market out of the Doldrums
More Homeowners Will Be Looking to Sell, Meaning More Houses Available for Sale and More Available Buyers Who Have Waited for the Inventory to Improve
[Plainview, New York] — Joe Moshé, Broker/Owner, Charles Rutenberg Realty, Inc.(CRRLI) says the rise in interest rates, coupled with the Tax Reform Act, could help to move the market from a seller’s market to a more level playing field for serious buyers. Ready buyers may have less competition to get the home of their dreams.
On March 21, 2018, the Fed announced that the benchmark interest rate has been increased from 1.5% to 1.75%. The agency cited improvement in the U.S. economy as the reason for the rate hike and added that it is looking to increase interest rates two more times before the end of the year. This is the sixth time since 2015 that the Fed has raised rates.
Mortgage rates got an early start on the Fed as they increased month over month, from 4.03% in January to 4.43% in February, according to Freddie Mac. Points and fees also went up from 0.5 to 0.6. Based on the 12-month average of the median Long Island home sales price being $430,000, according to the Long Island Board of REALTORS®, and after placing a 20% down payment, the average mortgage payment would go up from $1,648 a month in January to $1,708 in February, according to Bankrate.com. That is an increase of $720 a year.
Mr. Moshé says interest rates are still historically low, so there should be no real problem for most buyers. The great economy also helps to push more buyers and sellers into the market. With improved inventory, prices may stabilize to help offset the mortgage rate increase but will likely not go down.
“This spring, hesitant sellers will start to put their houses up on the market based on how great their neighbors have done in selling this past year,” he says. “Buyers who have been waiting for more available inventory will have less competition to buy the house they have always wanted.”
In general, Mr. Moshé feels optimistic that, once the snow finally melts, the market will be very active, despite interest rate and tax code changes.
The National Association of REALTORS® has named Charles Rutenberg Realty, Inc. among the top five firms in New York State. As one of the nation’s fastest-growing Agencies, with nearly 5,000 associated Real Estate Professionals nationwide, Charles Rutenberg Realty, Inc. is proud to serve Long Island and Queens, Brooklyn, Bronx, Westchester, Putnam, Rockland and Orange Counties. For more information, visit www.crrli.com.
About Charles Rutenberg Realty
Founded in 2006, by Joseph and Pam Moshé, Charles Rutenberg Realty, Inc. is one of the nation’s fastest-growing, most progressive Real Estate Agencies, with over 1000 associated Real Estate Professionals. Charles Rutenberg Realty, Inc. specializes in residential and commercial transactions in Long Island and Queens, Brooklyn, Bronx, Westchester, Putnam, Rockland and Orange Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty, Inc. has attained the highest market share for transactions closed, available inventory and listings taken for the last five years. The National Association of REALTORS® has recognized Charles Rutenberg Realty, Inc. as one of the top 5 Real Estate firms in New York and the top 75 Real Estate firms in the country. Agents are trained in the latest creative marketing programs to fulfill their clients’ financial and personal needs in Real Estate. Charles Rutenberg Realty, Inc. is headquartered in Plainview, New York and maintains branch offices in Queens, Bronx, Westchester, Nassau and Suffolk Counties. Other Charles Rutenberg offices are located in New York City; Clearwater, Orlando, and Fort Lauderdale, Florida; and Chicago, Illinois. For more information, visit www.crrli.com.