Low Interest Rates Aren’t Here to Stay

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What happens next after the federal funds rate increases?

April 14, 2015
Low Interest Rates Aren’t Here to Stay

Rising interest rates may be an equal or even greater threat than rising home prices, especially in the nation’s hottest markets, Boston.com reports.

The Federal Reserve has signaled its plans to boost the federal funds rate by as early as this summer, and according to Zillow’s Senior Director of Economic research Svenja Gudell, “the writing is on the wall.”

According to Boston.com, the rising rates can diminish the population’s buying power, as many are already scrambling to keep up with rising prices.

On the other hand, rising interest rates means sellers will eventually be forced to lower their prices to attract buyers.

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