The rate increase is indicative of an improving economy, Sonora said.
“Markets were looking for a positive sign from the Fed, and that’s all I think they’re trying to do,” he said. “I don’t think this was a surprise. The focus was to send a message to markets in general that the economy is on a firm footing.”
Sonora said he would be surprised if the rates get above 1.25 percent by December of next year.
On housing, a constant topic of interest in La Plata County, little impact is expected. Before the increase, the interest rate was at about 4 percent. With the increase, if a home buyer borrowed $280,000 on a $350,000 home the buyer would pay about $41 more a month.
Don Ricedorff, a real estate agent with The Wells Group, said the increase isn’t likely to shake La Plata County’s housing market.
“I’m not saying it’s not significant, but if they qualified for a loan before, they can probably still make it work.”
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