How will rising interest rates affect Staten Island's 2018 housing market?

588 views · Published 11 April 2018 · 0:49 · Indexed 25 September 2026

Channel: Staten Island Advance · 2018 · News & Politics

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After a strong kick-off to the 2018 housing market, only time will tell how rising interest rates will affect Staten Island residential real estate sales.

In fact, if the market value of homes dips this year, real estate professionals say it will likely be due to a hike in mortgage interest rates.

With interest rates unusually low for the last five years -- dipping to 3.65 percent -- they are beginning to creep up again -- to between 4.15 - 4.30 percent for a fixed rate mortgage.

"The big question facing the market in April, May and June -- typically our strongest months -- is just how much of an effect the interest rate increase will have on the marketplace," said Robert Kelly, broker/owner of Master Realtors in Prince's Bay.

"Typically it affects the lower end of the market more because these are first-time buyers and people with limited income trying to get into the market or trade up in the market," said Kelly.

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