“Let’s Talk Real Estate! “MORTGAGE RATES AND HOME PRICES” January 2nd, 2019
Lets Talk Real Estate!
“MORTGAGE RATES AND HOME PRICES”
Because interest rates have been relatively low in recent years, buyers have been able to afford more expensive homes than they would otherwise be able to buy. This inverse relationship between mortgage rates and home prices has generally worked to the advantage of sellers, who have enjoyed the benefit of getting the most money for their homes. However, as the Federal Reserve moves futher toward taming inflation, rising mortgage rates may begin to temper home prices. Would-be sellers should bear this in mind, as they consider whether they want to place their properties on the market. Playing the waiting games for an unneccessarily long period may work agaist sellers who do not act sooner than later. As rates are rising, homebuyers are trying to lock in current rates before they rise futher, and demand for mortgages continues to be strong. There are many benefits of home ownership, from building equity to getting tax breaks. But there are plenty of up-front fixed costs associated with buying a home. A common guideline is that it makes sense to buy only if you plan to stay in your home for atleast five to seven years. For information, please give us a call. “OUR SUCCESS HAS BEEN BUILT ONE SATISIFIED CUSTOMER AT A TIME.”