Rising Interest Rates and Park City Real Estate

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Today, I'm here with Gregory Cutt, the Branch Manager of Guaranteed Rate. Greg is the top producing mortgage broker in town, and he's also in the top 1% in the country. Greg's here to discuss rising interest rates in 2016, as well as the volatility in China's economy.
How do rising interest rates impact the real estate market? 
Recently, the Federal Reserve raised their rates by 0.25%. When the Fed raised their rates, it affected the money that the Federal Reserve lends to banks. This rate increase doesn't necessarily affect mortgage rates. In fact, since the rate increase, mortgage interest rates have held steady at around 4% for a 30-year fixed mortgage, which is still historically low.
What really drives mortgage interest rates increases are the condition of the U.S. economy and the condition of the world's economy. Although the U.S. economy is doing well, there have been issues in other parts of the world.

How will problems with China's economy affect our real estate market?
China has become a big issue, and this first week of the year has been rough for the U.S. stock market. When people aren't making money in the stock market, it's actually a good time for you to shift your money into real estate for bigger returns.
Most projections for 2016 don't see our market jumping up or rebounding this year. A lot of people think we are due for a correction, which we may already be seeing in the stock market.
In real estate, 2015 saw a 5% to 7% appreciation rate in home value, which is good news. Don't listen to all the doom and gloom in the media; sometimes trouble with the stock market presents good opportunities in real estate.
If you have any questions for Greg, you can reach him at (435) 647-3000. As always, if you have any real estate questions, give me a call or send me an email. We would be happy to help you!