How real estate consumers feel about the Federal Reserve’s recent interest rate increase may depend on whether they already own a home or are planning to buy one, according to a recent Berkshire Hathaway HomeServices survey. On Dec. 16, the Fed announced its decision to raise interest rates from a range of 0 to 0.25 percent to current levels of 0.25 to 0.5 percent. Officials said they will also lift the interest rate gradually over the next three years. Berkshire Hathaway’s latest Homeowner Sentiment Survey reveals a significant split in the way consumers feel about this news and how it may impact mortgage rates. According to interviews with about 2,500 current and prospective homeowners conducted in November weeks before the Fed announced its decision, most existing homeowners are shrugging their shoulders at the notion of paying higher interest rates. Those who weren’t so indifferent said higher mortgage payments will probably mean they have to make some persona...
- Berkshire Hathaway’s latest Homeowner Sentiment Survey was conducted weeks before the Fed announced the interest rate hike and involved interviews with about 2,500 current and prospective homeowners.
- The results showed that most homeowners aren't concerned about the Federal Reserve's rate increase.
- Prospective buyers, on the other hand, expect to experience more difficulty in affording their ideal property.
- Agents should take care to educate buyers and sellers about the real estate process and mortgage rates.