Federal interest rate impact on Rochester
ROCHESTER, Minn. (KTTC) – 30-year-fixed mortgage rates are at the highest level since 2007. That makes this recent increase from the Federal Reserve, the third consecutive interest rate hike.
For analyzing Rochester’s housing market, that entails a combination of macro, and micro-economic factors.
“Real estate is very local, and so when you’re hearing national news you really have to pair it with what’s happening in your local market, and your neighborhood and your price point. It really can vary from one to the next,” said Debra Quimby Remax Results broker associate.
Rochester’s market has it’s own positioning. But with that positioning, there are individuals who will still be feeling the federal squeeze even more.
“Unfortunately it effects those who are effected more by it than those who are not. They suffer more, the consumers who can least afford it, end up suffering the most,” said First Alliance Credit Union CEO Michael Rosek.
According to the U.S. Bureau of labor statistics, Rochester’s unemployment rate is 1.7%. That’s below the national average, but in-line with the FED’s economic plans.
“The unemployment part of it is not an issue right now, it’s the inflation... Younger people starting out with not a lot of savings, that’s going to affect them even more. Whether it’s mortgage loans, autos, things like that it has a real effect,” said Michael Rosek.
But for Rochester, the key takeaway is still to analyze the market on a per-basis level.
“There’s a constant rhythm, and so you just really have to key in with your real estate expert, and local, local to your area,” said Debra Quimby.
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