Happy New Year everyone!

We are already into the first week of 2019 and a hot topic in the Real Estate
world right now is interest rates. With a few interest rate hikes last year, a lot of buyer’s are concerned
with what kind of rates they can get and should they wait to buy real estate?

My prediction for 2019 Interest Rates.

Historically speaking 4% -5% interest rate is still very low. We have been spoiled the last few years of
interest rates as low as 3.25%,3.75%, 4.25% etc… Millennials like myself have never known anything
other than low interest rates. My father talks about buying his first house at 13% interest back in the
80’s.

According to other articles I have read and other professionals I have spoken to the federal reserve is
going to probably hold steady under 6%, so we are mostly likely going to see a few more rate rises this
year. With each rate hike the buyer loses buying power and increases the cost of their monthly
payment. I believe it is going to affect home prices and we are going to see them hold steady and start
to come down as there is a good amount of inventory in our Alaskan market.

What Does This Mean for You?

If you are thinking of buying now is a good time to start making a plan. The rates will NOT be coming
down. It is still less expensive to own than it is to rent. Call me for details and I’d be happy to point you
in the right direction to get your buyer process started. If you’re interested in selling call me and we can
get you a free home valuation.

For more historical data on interest rates see our article on 2017 Interest Rates.

Source: How Will Real Estate Handle Rising Interest Rates?