Editor’s note: This following article appeared on the U.S. News Real Estate blog.
By Susan Johnston Taylor
Copyright 2015 © U.S. News & World Report L.P.
At the close of last year, many real estate experts predicted the U.S. Federal Reserve would raise interest rates in 2015. That prediction never came to be, but even if rates rise later this month or next year, Ralph McLaughlin, a housing economist at Trulia, doesn't think it will scare away many buyers.
If rates do increase, it could be as little as a quarter percent. McLaughlin doesn't expect that to have a big impact on the market, but it could temper home price growth, "which is good news for prospective homebuyers," he says. "Interest rates won't have much of an effect on the 'rent versus buy' math," he explains. "Buying would still be cheaper than renting in most metros around the country."
Here's a look at other real estate trends to expect heading into the new year.
1. Cooling coastal markets. Metropolitan areas on the West Coast and in the Northeast have been hot real estate markets during the past several years, but McLaughlin says some of the country's priciest housing markets are showing signs of ... Read the entire article at the U.S. News site.