Lower Interest Rates Mean...

     Interests rates are still at all time lows. This is thanks in part to low oil prices and the United States economy being the strongest economy on the planet right now. However as the economy grows and inflation starts to come back into normal range, we can be sure interest rates will rise. In that environment it means higher mortgage rates. So instead of the wonderful 3.7% for a thirty year fixed, it will certainly rise back up to the 4’s and who knows where from there. Again, the purchasing power for buyers will deteriorate, meaning they will not be able to buy the same house as they could have before. Therefore there will be fewer buyers. Sellers should keep an eye on this.

     All told there is a reason for urgency at this time in our real estate market. Anyone thinking of a real estate transaction of any kind at this stage will be affected by the movement of interest rates. So put on your thinking caps, and figure out if there is any way that you can get started earlier this year than you were planning to. 

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