Benchmark rate increase and a strong economy signals more hikes to come, increasing mortgage rates and potentially restricting home value growth.

The Central Bank raised rates a quarter point from 1.5% to 1.75%, responding to a growing economy, low unemployment rate and GDP growth.  The Fed vote was unanimous.  Officials state that the Fed will raise rates this year another 2 or 3 times and the same for 2019.  This signals economic restriction.
Mortgage consumers will pay more to secure home financing.  The national mortgage average increased to 4.44%.        Although rates are still far below average rates before 2008, consumers in contract are scrambling in lock in rates amidst the changes.
What will this mean for home sellers over the coming year?  Probably not a big immediate effect in home prices just quite yet.  The Fed aims at pumping the brakes on the economy and thwart off inflation higher than 2%.  So, don’t expect real estate prices to grow at the rate that has taken place over the past 2 years.

Some areas of the Bronx may be immediately immune to this phenomenon.  New developments being constructed and high rental demand have kept real estate prices strong.
Despite the current administration loosening economic restrictions in the consumer sector, rising interest rates should always caution home sellers to vet qualified buyers.  Home buyer pre-qualifications dated a week ago may not reflect a buyer’s true standing.  Home sellers should qualify directly through their preferred lender.  They can also opt to work with a real estate professional who is savvy on today’s mortgage financing.