CHICAGO, IL – The Federal Reserve recently raised interest rates to try to curb inflation. It’s a change that affects anyone who has a credit card, is looking to secure a loan, and is in the market to buy a house.
WGN News Now spoke with mortgage broker and owner of Molitor Financial Group, Troy Molitor, who said the increase in interest rates could have an impact on the white-hot Chicago area housing market.
Molitor said this is going to pull the demand back and slow the speed of the economy, but that’s not all bad news for potential home buyers.
The housing market has been so hot in recent months that prices have surged. Molitor said while the interest rate hike may mean mortgage rates will also go up, the price of homes will likely go down.
As a result, home buyers may be able to pay a lower price for a house because the demand has dipped.
The rate hike also impacts savings accounts, and if you’re looking to build wealth through savings channels Molitor recommended you sit down with a professional financial planner and strategize a plan.
He suggested working with a professional real estate agent to get better opportunities when buying a home. Molitor said people tend to have a wider selection to pick from and a better chance of securing the offer.
As for refinancing, he said there are a lot of factors consider, and a professional mortgage person can help you map out a plan to accomplish your goals.
Molitor also recommended working with a professional financial planner if you’re looking to build wealth through savings channels, which are also impacted by the rate hike.
You can hear more advice in the video above and find more resources on his website.