BrokerageIndustry News

Fed remains steady on rates, industry calms down

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While Wall Street waited today for The Federal Reserve to make a move–or as it turned out to not make a move–on interest rates, the real estate industry also took note. The Fed's Open Market Committee decided today to keep its target for the federal funds rate at 1 percent. John Kary, a Realtor for RE/MAX 440 in Skippack, Pa., said he typically tracks the Fed to stay in tune with the market. "Traditionally, I have always been attentive to the Fed's moves since it affects my opinion as to how to market a home," Kary said. "At high (interest) rates, it is a buyers market and at low rates, it is a sellers market." Kary said low interest rates have driven up home prices in his area to the point at which home-buying activity has already slowed, and interest rate increases are likely to further stagnate the market. Take an Inman Pulse survey on interest rates. "With the raising of rates, homes will be out of reach for the average buyer. Raising the interest rates will stop the r...