It is true, with the announcement of the FED last week, regarding Fannie Mae and Freddie Mac, interest rates that have been at historic low levels did go up. However, everything is relative. In order for the housing market to grow to the next level of recovery,( inventories have been decreasing in median price ranges for the last quarter effectively creating a pricing increase = supply/demand), an interest rate boost was inevitable. Unfortunately, the FED news boosted it higher than anyone expected or wanted. Slow increases are always more easily absorbed.
Are we hurt? Absolutely not. In the Harrisonburg-Rockingham and Staunton-Augusta markets, we still have new inventory, interest rates are still below 5.0% and consumers can still find the home they want with payments that are acceptable. If you are searching for a home now, or want to sell, its still a great time. It is not time to wait and see what happens, however. As we continue recovery here in the Harrisonburg-Rockingham and Staunton-Augusta markets, today will prove to be less expensive than this time next year.