A lot has been written about the Federal Reserve raising interest rates.
My view is that in the short term, an interest rate hike will actually spur the housing market. The increase, and the press attention around it, will cause people who have been considering buying a house in the next 6-24 months to get off the fence and take action.
People's perception is that once rates start to go up, they will continue going up, and they should accelerate their home buying once a rate hike happens - interest rate increases become more "real" then they have been in the past.
Of course for those few whose income and credit is so marginal that any increase will hurt them raising interest rates will be a problem.
For the people who doubted interest rates would rise, the Federal Reserve has shown they will raise the rates. By how much is anybody’s prediction.
So if you are sensitive to raising interest rates now is probably a good time to take action.
For the sellers that have been thinking about selling but have not come to a decision, the reality that interest rates will rise over time may help them decide to sell while rates are still low. This may increase the level of quality inventory.