November Signs Of Imminent Interest Rate Hike
This month, after a strong jobs report on November 6th, the Fed has said that they will most likely raise interest rates at their next meeting in December. In their September meeting, the Fed held off on an interest rate hike, which would have been the first in 10 years, because of a slowdown in China’s economy. Although the Chinese Central Bank has lowered their interest rates for the seventh time this month, it seems the Fed is banking that US growth will continue to be strong enough to hike rates. With inflation at over 2% for the first time in years, it’s a good bet that we’ll get the bad news of a rate increase at their next meeting in mid-December.
Median prices for homes have been increasing steadily of the last year on Maui. We still have a bifurcated market, with primary residences under $1,000,000 continuing to show a steady increase while condo prices growing at a much slower pace and vacation homes in the $1m plus range showing a reduction in purchase prices. Those looking to purchase expensive homes in resort areas are in for some great bargains. Prices are still much lower than the peak in 2006 but are expected to grow 2016 by 5% nationwide in 2016, according to the National Association of Realtors.
It’s still a great time to buy with interest rates continuing to hover in the 4% range, but the days left to buy at low prices are the lowest interest rates are definitely numbered.