By the Kent Redding Group
AUSTIN, TX. – Back on June 14th 2017 the Federal Reserve raised interest rates by just a quarter of a percent and many have predicted that they are going to raise interest rates at least two more times in 2017.
Will rising interest rates affect the Austin Texas Real Estate market? The answer to this question is probably not.
30-year mortgage interest rates are still historically low at 3.9% and we have a long way to go before interest rates go back up to “normal” historical levels.
It’s also a fact that the Fed and mortgage rates often go in opposite directions so while the Fed continues to raise interest rates we could see mortgage rates stay low at least for the remainder of this year and beyond.
With a strong economy, low unemployment and low inflation that we’ve enjoyed over the last 9 years many economists have waited for rising interest rates to cool down the economy but the reality is that rate increases may actually put pressure on our financial system and encourage more banks to lend money.
A good example of this can be traced back to December of last year when the Fed started raising interest rates. Back then total mortgages went up 2.5% year-over-year and that same pattern of growth has continued through to July 2017.
Thankfully, the economic growth that we’ve experienced in recent years continues, especially in Austin Texas.
A recent article on Realtor.com listed Austin as one of the top cities in the United States to build a career.
Median home price: $396,500
Median salary of the top 25% of earners: $61,710
Austin’s housing has been hot for a while, but it's less cutthroat than in bigger metros. And there are still plenty of opportunities to buy, such as in new developments like Whisper Valley. The community, located just outside of Austin, is touted as the largest "net-zero" housing development in the nation, designed to send as much energy back to the power grid as residents use.
It’s A Great Time to Sell Your Home
Are you planning on listing your home on the Austin Texas Real Estate market? Now is a great time to sell thanks to a tight inventory of homes and huge demand.
Get started with selling your home by contacting the Kent Redding Group today by calling us at (512) 306-1001 or click here to connect with us online.