The Impact of Fed Rate Hike on Housing

12/09/2015
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The Fed intends to hike rates later this month.  When this happens how will it impact housing?  You might be surprised at what Barry Habib has to say about it.  CLICK HERE for the NFIB Report.  CLICK HERE to get a free trial of MBS Highway!

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19 thoughts on “The Impact of Fed Rate Hike on Housing”

  1. Good morning. Well, I have to say that since the interest hike being in the news I have received a LOT more showings on my three active listings here in Baltimore Metro. Let's see if that transform into actually contracts.

  2. Victor Bals says:

    Well I have been in the biz 14 years, and everytime the feds do a rate hike, biz slows for just a couple weeks. Then it breaks loose and buisness increases. Remember loan officers, we do not sell rate but objective. If people need to buy a home it is not due to rate, they buy due to objective. If rates were at 10% they would still buy, but buy less. Also when rates are higher, these are signs of a good economy and a strong and consistent future for the business. I eat this stuff for breakfast.

  3. Anthony says:

    Would have to agree having lived through Fed cycles since the early 1990’s. IS it also possible longer term yields fall given Euro yields are near zero as investors search for yield? Also dig the Rush shirt. Saw them for the umpteenth time in Philly last June. amazing as always.

  4. Chicken Little has been running around all year telling us interest rates are going up. This simply hasn't happened. The economy is NOT in good shape, there is no return on investment for putting your money in the bank (ads touting less than 1% return…are you kidding?). Even if the Fed hikes the rate, don't really see it making a difference right now. We need to get the economy kick started so that people bring their money to the table. Personally, until we see an administration change, I don't see much change. Sigh!

  5. John Bonwitt says:

    excellent post! Thanks so, much for the info. JB

  6. Charles J Pastore says:

    More importantly- awesome shirt. greatest band of all time.

  7. Charles J Pastore says:

    Awesome shirt. Greatest band ever.

  8. The key word here is FEAR…..what this country needs is less people trying to scare the public not more. FEAR will be the down fall of this country and those that get off on spreading fear every cnance they get are the generators. STOP watching the so called news…why does news have to be negative, negative, negative all the time and down right lies by some. The public isn't being fed positive things by the media…only negative. Want to turn this country around turn off the news and the vile talk radio shows.
    Raise the rates to 5-6% or even highter and you will see a good change…it will not stop people from buying homes, We paid 12.25% back in 85 and still managed to pay the mortgage.
    I keep hearing how bad the economy is but fail to see it…what I do see is new contruction everywhere both commercial and residential and no real sign it is letting up….so how bad is that??
    Seems not everyone is buying into the FEAR state of mind. Thank goodness

  9. Dudes 3 days in a row that I can not share your post…wht is up with that??

  10. Brett Pavel says:

    Let's not get political? Really? Well an obstructionist GOP would rather see the country and President fail…period. And while anemic, this is the longest recovery in memory. How you could infer it is Obama's fault is stunningly ignorant.

  11. Our first home we paid 16% interest on our mortgage. We were thrilled because the rates had come down from 18%. The house was only 45k so it all worked. The low interest rates are driving up the value of the houses again, at least in S FL. I think it's dangerous to have these rates sit where they are as they are creating a false value. Rates should have been started to be raised two years ago. 1/4% does not deter anyone from buying. My mother's rate was 6% when she bought in the 1950's. Rates were 14% when I first started as a Realtor 28 years ago and a lot of darn housing has been sold in between all over the country. Relax! Business will continue.

  12. And there we see it again. Whenever someone on the left feels threatended they blame the Replublicans. I'm surprised you didn't say, "It's all Bush's fault!"
    Now let's get back to reality and look at the facts:

    FACT: Regulations in the financial sector have gone through the roof since Obama took office. While some have been helpful (the SAFE Act), most have done nothing but harm small businesses and put a drag on the economy.

    FACT: Regulations in the healthcare field have gone through the roof forcing small practices to shut down or merge with larger hospital systems. ObamaCare has sent medical costs soaring and has resulted in a drag on the economy.

    FACT: Regulations in the areas of ecology, farming, food production, human resources, (are you seeing a pattern yet Brett?) have all skyrocketed, causing financial hardships on small companies and preventing companies from wanting to hire employees.

    Now we have our President saying, "The greatest threat to our nation is…global warming." Really?? How can ANYONE take this man seriously?!? The democrats under his leadership have done everything in their power to destroy our capitalist way of life which our country was built upon.

    But that's OK Brett. You think what you want to. I know these facts won't get in the way of your opinion.

  13. Brett Pavel says:

    Warren Goldberg You logic compels me to write a thank you note to W for the the wonderful unregulated 2008 collapse, Warren. How could I be so liberal and thoughless?

  14. Chris Love says:

    Brett Pavel not that you are so liberal and thoughtless, you are just uneducated. The unregulated collapse of 2008 was due to the Fair Housing Initiatives Program signed into law in 1998 (or so) by Clinton. Lenders warned at that time the lower credit standards and documentation standards would lead to a collapse in the housing market, but they were told to sit down and shut up. When the 2008 collapse hit, the market had just reached the goals set forth by the FHIP. Bush admin was going to Congress warning about levels of loans and numbers of low credit, no money down, select payments, but were told they would be discriminating against lower income borrowers if they tried to stop the program. Yeah, it happened under Bush's admin, but it was set in place and KEPT in place by the left side of the aisle. If you really want a face to put on the collapse, take a look at Barney Frank.

  15. Brett Pavel says:

    Chris Love Texas….figures.

  16. Chris Love hit the nail on the head. His analysis is spot on.
    The only think I'd add is that our industry (in fact ALL financial services) were far from "unregulated" prior to 2008. Some regulation is necessary. But the overburdensome regulations added over the past few years has harmed both businesses AND borrowers alike.

  17. Warren Goldberg Back to 2007 for a moment… who cut the lending? Why did they cut it? What did the Moderinzation Act of 2000 do to the Glass Steagle Act of 1934? WallStreet paid to reopen the casino… it wasn'r regulated much and the rest is history… except… for the smart money guys that saw the table tilting… John Paulsen comes to mind… 3.7 billion in betting profits in a few short years. History repeating itself and it will happen again… just different players blaming other players.

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