One of the most frequent questions we are asked is “what is going to happen in the real estate market”. Unfortunately, we are unable to look into a crystal ball and see what’s going to happen.

Clearly we have seen things slow down somewhat from what we have seen in the recent future. The recent  rise in mortgage rates have taken some people out of the market, particularly in the low end of the market. Our Realtor friends have told us that they are not getting the multiple offers and as many offers over list price that we were seeing in the recent past. Many housing economists warn that continued weakening could see home price corrections hit some regional housing markets.

It’s going to depend on where you live. Markets that have seen some of the higher increases could seen single digit declines. In the areas like middle America, we could see small increases.

At the Fed’s next scheduled monetary policy meeting takes place on September 20-21, most experts are predicting additional rate hikes, although they may not be as dramatic this time, depending on what goes on in the economy in the next few weeks and months. While mortgage rates are not directly tied to the Federal interest rate, they are certainly related.

If you are considering purchasing a home, you should probably not wait. With likely mortgage rate increases coming and possible housing prices increasing, you can probably purchase more house for your money now than if you wait.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.