With the housing market on fire and prices rising, the jobs numbers are in and it seems like the economy is on a fast track. Economists say it is almost a given the the Federal Reserve is going to raise interest rates in June.
“The report virtually cements the odds of a June rate hike. Something dramatic has to happen to persuade the Fed not to move,” said Sal Guatieri, senior economist at BMO Capital Markets.
Carl Tannenbaum, chief economist at Northern Trust, agreed, saying that if there was any doubt that the Fed would move, it is now gone.
“The continued solid performance of the labor market at such a late stage of economic expansion should certainly justify continued removal of monetary accommodation,” Tannembaum said.
What does this mean for home buyers? It means that the amount of house they can afford is likely going to be limited come June. This is why it is imperative for home buyers seeking to buy soon should try to find a house and get under contract so that they can lock in their interest rates before the Fed interest rate hike comes.
If you’re in the market for a new home, don’t wait or it could cost you a good deal more as interest rates are on the rise.
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