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Today we are going to talk about what’s in store for the real estate market in the near future. The latest interest rate projections are in from Fannie Mae, Freddie Mac, the Mortgage Banker’s Association, and the National Association of Realtors.
If we take all of these projections and average them out, you can see that rates are likely to rise a full 1% from where they are now by the end of the year. We’ve been waiting for a while for rates to creep back up, and it looks like 2016 is that year. If you get ahead of that as a buyer or seller, you’ll be in a much better situation.
The people that are most affected by interest rates are first-time buyers, with move-up buyers being the second most affected. If you fall into one of these categories, realize that interest rate increases are coming, and they are going to have a huge impact.
According to Zillow, 70% of buyers are going to continue with their buying plans regardless of whether rates jump or not. The other 30% are going to change their plans if and when rises come. In addition to this, 45% of buyers would consider a smaller home or less expensive community in the event of rate increases. We don’t want you to have to do that.
You need to get out into the market now, when rates are low. If you have any questions for us about how to get your plans in order, give us a call or send us an email. We can’t wait to hear from you!
