What is the Fed and how the interest rates affect Real Estate
Mike Ferrante from the 21 Mike Team at Century 21 HomeStar discussed the Fed and interest rates with Joe Fragapane and Tim Atkinson from First National Bank.
The Fed, also called the Central Bank, controls interest rates and fair markets for the United States. The interest rate is expected to increase 2-3 times this year.
The Fed has been keeping their rates low to stimulate economic activity during the pandemic. To try to control inflation, the Fed will be raising interest rates.
It may be a surprise to many of you, but a change in the prime rate does not affect mortgages as much as you may think. A .25% increase on a loan of $200,000 may only increase a monthly payment by approximately $30.
Waiting to buy is not the solution; prices will only increase in this seller’s market. Tim tells clients – it is rare that you will be able to save as much as your home will appreciation.
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Mike Ferrante [email protected]
Joe Fragapane [email protected] 216/205-4567
Tim Atkinson [email protected] 216/347-2296