It was 2006 prior to the Great Recession, when interest rates rose. In fact, rates have remained at zero for the past 6 years. Federal Chairwoman, Janet Yellen was slow and methodical in pulling the trigger, but to her credit, the vote was unanimous.
To quote Ms. Yellen, “The Fed’s decision today reflects our confidence in the US economy. We believe we have seen substantial improvement in labor market conditions and while things may be uneven across regions of the country, and industrial sectors, we see an economy that is on a path of sustainable improvement.”
The increase was .25%, with indications of further slow and digestible increases. Smart, very smart! The stock market rallied. A quarter of a percent doesn’t rock anyone’s world and yet it sends the loud & clear message that the economy in America is on sound footings. Speaking as one who entered the real estate industry when interest rates were over 18%, money is still cheap.
Real Estate sales nationwide should not be damaged by this move. In fact, logically, it should stimulate activity since it is clear rates will continue to go up in the future.
There’s no better time than the present!