The Federal Reserve’s benchmark interest rate recently increased by one-quarter of a percentage point. While this increased rate could make home buying more expensive, house hunters should take comfort in the fact that rates are still relatively low. Many experts don't expect them to rise above 5% this year.
There is also speculation that the economy, which already began to pick up speed in the past year before the election, will continue to gain momentum. If this continues, house hunters won’t feel the effects of the higher rates because their wages may increase as well. New home sales surged more than 6% in February, to their highest levels in seven months. This could be just the beginning of an upturn.