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Will Rising Interest Rates Slow Sedona Home Price Increases

Posted By Wally Reule @ Sep 9th 2014 5:59pm In: Sedona Real Estate Market News

Someone recently forwarded an article to me that stated, and demonstrated, that historically home prices have increased while the Fed is raising interest rates. It seems counter intuitive, but it is true. However, correlation does not equal causation. The reason the Fed raises interest rates is because prices are already going up, and they want to slow the rate of increase. I actually can't ever remember a client telling me that they wanted to buy a house, but the interest rates were too low! And it would be great if the market responded instantly when interest rates were changed, but there seems to be a lag time. It is still a great time to buy real estate in Sedona because home prices and interest rates are both on their way up.

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