How Portlanders can get ahead of rate increases.
The Fed has indicated that the first increase will probably occur in March, which means you’ll want to get your home loan before rates go up. If you don’t buy a home before that first increase hits, it’s still smart to keep moving forward. Experts anticipate three or four total increases during this calendar year.
What causes the increases
When the economy is struggling, the Fed cuts interest rates to encourage consumers to make more purchases. Federal Reserve Chair Jerome Powell explains the decision to raise rates, “This is going to be a year in which we move steadily away from the very highly accommodative monetary policy we put in place to deal with the economic effects of the pandemic.”
The unemployment rate has fallen to 3.9%, down from its peak of 14.7% at the worst economic point in the pandemic and near its February 2020 level of 3.5%. Wages are growing at the fastest pace in decades.
In addition, the U.S. Gross Domestic Product (GDP) grew at a 5.7% pace during 2021, which is the fastest rate since 1984.
Your next move
Whether you want to live in another school district, find a neighborhood with the right vibe, shorten your commute, or downsize to a smaller home, it’s smart to start your house hunting journey right away.
It’s also a great idea to get pre-approved for a mortgage so your offer is more likely to be accepted by a seller. Please contact us to learn how we can help get your started.