Feds increases Interest Rates going into 2019.
The Federal Reserve announced a rate increase for 2019. The current rate stands at 2.50% which is higher then the previous rate of 2.25% set in September 2018. Investors and potential Buyers may be concerned about increased rates for the New Year, however, the local Washington D.C. market has soundly demonstrated it's ability to shield itself from home value decreases with potential higher borrowing rates. Additionally, the impact would be focused more on short-term borrowing, such as products like ARMs and HELOCs. Recent reports conclude the Metro Area has a significant housing shortage and the recent Amazon announcement for HQ2 in Crystal City should help bolster needs. With new construction slowly coming back to consistent levels, we should not expect any major disruptions in the local housing market.
(related article from Bankrate 12/2018) -