With all of the fluctuations in the economy lately, buying a Boston condo can be a confusing endeavor. A while back, the Federal Reserve raised the benchmark interest rate by a quarter of a percentage point. This interest rate increase may seem small, but it will undoubtedly affect the Downtown Boston real estate market in many ways.
Because of the decline in interested buyers, the increase in interest rates may not actually affect the overall price of a property. Less people will be interested in buying due to the higher cost, so many sellers may choose to lower the price of their condo for sale in Downtown Boston in order to attract potential buyers. Some real estate brokers are recommending that their clients wait a short time before buying, so that the real estate market can settle back down.
Though this interest rate increase was the most drastic jump in a decade, increases in the future will most likely be more gradual. Due to the economy, the Federal Reserve may increase interests rates again soon. These increases can add quite a bit of money to overall payments. Therefore, a fixed-rate mortgage may be a better choice for homebuyers. An adjustable rate mortgage may be initially lower than a fixed rate mortgage, but the current real estate market cycle makes it probable that interest rates will continue to rise.
If you’re interested in purchasing a Boston Midtown condo before another rate increase, reach out to Ford Realty. We’re experts in local real estate market.
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