Like many brokers challenged in an unforgiving mortgage market, she’d prefer more immediate results. “My hope is that rates will settle back down to the high 5s to mid 6s which I feel would be a more healthy interest rate for the real estate economy and then hopefully we can focus on lack of housing,” she said. “It’s tough for buyers out there with house prices continuing to rise in a lot of markets, a stabilization of rates to something more affordable would be a breath of fresh air.”
She echoed Solis’s sentiment as it relates to buying a home in today’s market – warts and all: “My piece of advice for potential buyers would be, buying a home, especially your first, is always going to feel uncomfortable,” she said. “It will feel like a stretch for most. Instead of focusing on the negatives – high prices, high rates, lack of housing, affordability – focus on the benefits: tax advantages, equity and amortization gain. I truly believe real estate is one of the best vehicles to create generational wealth. It’s important to get in the game even if your first home isn’t a perfect match. What that investment builds over the next couple years is unmatched.”
Even the staid National Association of Realtors seemed unfazed by the Fed’s latest action, adopting instead an explanatory stance related to the central bank’s machinations.
“A monetary policy lag time exists between decision and inflation,” NAR’s chief economist, Lawrence Yim, said in a prepared statement. “The rate hikes from earlier months have yet to exert their force at a time when inflation has already decelerated to 4%. There is no need to consider raising interest rates.”
Quite the contrary, he added: “In fact, considering the balance sheet difficulties faced by community banks and weakness in the commercial real estate sector, the Fed should look at cutting interest rates before the end of the year. The Fed should look forward, not backward.”
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