The Federal Reserve has hinted that higher interest rates are coming soon – quite possibly at its March meeting. Rates are already higher: 3.05 percent on December 23 to 3.55 percent on January 27.

While higher rates may limit some would-be buyers, the fact rates are still near historic lows and the uncertainty about how the rates may eventually go, could actually push more buyers into the market.

Most experts expect buyer demand to remain strong even as inventory remains low.