Is there such a thing as living in paradise, while still on this earth? Well, I think the secret may be in how you look at life, in general.My life began in Michigan, where as a child, we
Rising Interest Rates And Their Impact On Consumers
Interest rates have risen every week for the last 9 weeks, bringing them to a 4-year high. According to Freddie Mac the average rate on a 30-year fixed mortgage rose to 4.46% this week, marking the highest average since January of 2014. Mortgage rates have been held at these historically low rates by the Federal Reserve Bank (Fed) to encourage home ownership and spur on economic activity over the last decade. This fact, coupled with market trends, such as Sellers deciding to stay in their current home longer on average before selling, have driven the market into a steep seller's market with above average annual increases in home prices. Interest rates remaining low has helped Buyers overcome both the fact that home prices are rising faster than wages and the shortage of supply in homes for sale. Accordingly, rising rates are slowly hurting affordability and pricing some buyers out of the market or discouraging them to buy. They can either no longer afford to buy the home they desire or are no longer willing to pay the necessary price for the home they desire. This leaves some Buyers asking why, why would the Fed raise interest rates, effectively disabling some people from buying. The Fed's primary goal to regulate the movement of money throughout American finance and control inflation. Raising interest rates will bring our real estate market back from a heavy Sellers market to a balanced market, which is great news for those who still plan to buy regardless of rising interest rates and low inventory.While this is not the best news for everyone, it is a good step to ensure we do not continue down a road of unsustainable inflation in home prices, as we saw a decade ago.
So what does this mean for consumers looking to buy, sell or invest in real estate in the coming months? For buyers, time is of the essence. As rates continue to climb, it is all that more important to stay in close contact with your Realtor and mortgage lender to be on the forefront of new listings and closely monitoring interest rates to ensure you get your rate lock as low as possible. For sellers, now is the time to list your home! If you have been watching the market, seeing homes in your neighborhood going for sale at increasingly higher prices and wondering if you should take advantage of this strong market to sell, the answer is yes! The market will inevitably correct and balance out, resulting in either a decline in home values or greater competition among listings. Call me today to get a free valuation of your home and capitalize on this great market. All things considered, there is never a bad time to buy, sell or invest in real estate, rather there is a best strategy to accomplish any real estate goal, by taking the current market conditions into consideration and act accordingly.
Chris Myrick, REALTOR
Integrity Team at Keller Williams
[email protected] or 850-591-1956
As a college student Chris began working with one of our affiliated companies, Rent With Integrity Property Management. Though he began as an entry-level office assistant scanning and filing document....
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Interest rates have risen every week for the last 9 weeks, bringing them to a 4-year high. According to Freddie Mac the average rate on a 30-year fixed mortgage rose to 4.46% this week,