How Rising Interest Rates Affect Homebuyers
Slowly but surely, America is climbing out of the worst economic downturn we've seen since the Great Depression. Almost ten years after the housing crash in 2008, we're seeing signs of a brighter future on the economic horizon. One of the most promising signs is that the Federal Reserve finally delivered the promised interest rate hike at the end of 2016. This is definitely good news for our economy overall, but it can have a significant impact on prospective homebuyers. Arrowhead Title, Inc. is here to help you understand how these rising interest rates may impact homebuyers at the Lake. The Federal Reserve's Key Interest Rate The Federal Reserve has only raised the key interest rate twice since 2006. The first hike occurred in December of 2015. They projected rates to rise four more times throughout 2016, but the next increase did not occur until just last month (December of 2016). During the housing crash of 2008, the Federal Reserve slashed the key interest r...