WICHITA, KS: (wichitaksrealty.news) Mountains and the Wichita housing market, what is the connection? For this week, the answer is a lot. As Janet Yellen, head of the Federal Reserve, is set to give her speech at the yearly Jackson Hole Symposium, many an ear will be listening to signs and trying to read the tea leaves to see just how the fed is positioning itself against a backdrop of almost a decade of easing monetary policy.
With mortgage rates maintaining their long term lows, moving only so slightly the past couple of years, any sign of tightening by the fed will most likely tick up interest rates which can increase the mortgage rates most borrowers are needing to fund their housing purchases. This can possibly have an effect on purchasing activity. As some think any increase in mortgage rates would likely slow sales, others feel that it could shake loose those that are sitting on the fence and motivate them into action. Either are possible. At some time, the fed “should” let the economy out from under the spell of easy money, allow a little bit of inflation back into the markets and get back into a more macro roll.
But all this will have to be experienced first hand. Just so you know, this Jackson Hole Symposium should give some indication of what we can expect throughout the end of the year and into the first part of 2017.