The Effect of Rising Interest Rates on the Market

Chicago Real Estate Podcast with Vergis Eiland

Interest rates rose again. How will this affect our market?

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On September 26 interest rates went up again—this time by 0.25%. This time by a quarter of a percent. Today we will be discussing how this recent rate change will affect the real estate market.

David says that he doesn't think it will have much of an impact, because this change comes as no surprise. Since so many people saw this coming, he believes that it was already worked into the mortgage market in terms of rates. However, we may still see a slight fluctuation. If the Fed does something surprising, though, then we'll see a change.

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The rising interest rates won't affect the market because it isn't a surprise.

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Rates, of course, do affect other things, such as credit cards, instantly. They also affect car loans. So, over the long-term, the rising cost of credit could affect the mortgage market.

We still do expect one more rate increase this year in either November or December.

If you have any questions about this, please feel free to reach out to us. We would be happy to help.