Whether you’re buying or selling a home in our market, you need to pay attention to how interest rates are moving since the election.
Now that the 2016 presidential election has come and gone, what kind of impact can we expect President-elect Donald Trump to have on our Northern Virginia market?
As we all know, Trump’s former business was real estate development, so that in itself should be beneficial. There’s still a lot of uncertainty hanging in the air, though. The thing we’re watching most closely are interest rates.
The day after the election, rates went from 3.5% to almost 4%. That was triggered by a big sell-off in the bond market. This really affected buyers’ affordability. We ourselves had a client who was quoted a rate of 3.5% before the election, and afterward, the rate jump increased her monthly payment by $200.
So, if you think there’s a lot of uncertainty now, imagine what’s going to happen after the inauguration. We’re paying close attention to when the Federal Reserve meets this month, and you’d better believe that rates are going up after that happens. I expect them to rise to the mid-4% range.
Whether you’re buying or selling a home, pay attention to the interest rates.
Not all of this could be broken down into one video, so I encourage you to check out the other videos in this series by clicking here.
Finally, if you have any questions about how the election will affect our real estate market, please don’t hesitate to reach out to me by phone or email. I’d be happy to help!