Nobu Hata is actively in the market to buy a home, and he knows interest rates are going up, but it is still “a little bit of gut check when it happens.” The Chicago resident dubs it a “personal hurdle” for some homebuyers. (Although Hata works for the National Association of Realtors, this is not the official company line.)The Federal Reserve announced its first rate hike (0.25 percent) in almost nine years. The effect on the economy, the stock market and housing sales have been debated and analyzed by policy makers and the news media for almost a year.For the housing market, most industry experts downplay the effect of interest rates, but historically, the psychological effect of rising rates seems to cut two ways:Prompting buyers to move quickly before rates r...
- Historically, the psychological effect of rising rates seems to cut two ways.
- One way is prompting buyers to move quickly before rates rise even more.
- Alternatively, higher rates entice cautious buyers, who are already cutting it close with their personal finances, to hold off buying a house.