We’ve seen interest rates rising recently.
Rates on 30-year fixed mortgages have gone up almost a full percentage point since reaching record lows six months ago.
REALTORS and consumers are understandably anxious about what this
means for the real estate market. While there is currently no evidence
of rising interest rates slowing the economy, they will invariably have
an impact on loans.
I believe there is reason for hope. Although it’s likely that fewer
people will refinance, since they already have low interest rates, banks
will still need to make money. As a result, they may need to increase
loan originations. To do so, there is a very good chance that lenders
could ease credit standards away from over-stringency to ensure the
greatest number of qualified buyers have access to mortgage interest.
While you may be hearing concerns from your clients about rising
interest rates, don’t despair. Tell your clients that it’s not
necessarily bad news for real estate if rising interest rates are
balanced with opening credit to more consumers.
We’re hopeful—and it’s more than just a glimmer—that if the economy
can recover as much as it has under tight credit conditions, it may do
even better as credit steadily returns to normal.
Author:Connie White Phone: 843-532-3356 Dated: August 17th 2013 Views: 5,612 About Connie: My personal venture into real estate was driven by the desire to provide an enjoyable environme...
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"Connie White recently helped me sell my home in West Ashley. A friend used a Realtor in NC and had a good experience, so when I needed to put my home up for sale, I searched the internet and an amazing website which put me in contact with Connie. That was the best possible bit of luck! My father and I owned the home together, so all decisions had to be made by us plus my husband, and none of us live in the Charleston area. With little money to do any repairs or updating to the home, Connie really had a very difficult task. She was absolutely wonderful to work with, patiently working with us and counseling us what to do to sell the property. She stayed in constant contact with updates and followed up with potential buyers in a timely way. I would highly recommend her to anyone looking to sell a home and am happy to be a reference if ever needed.