What Happens When Mortgage Interest Rates Go Up?
The Orange County Real Estate market has experienced excellent growth in 2013 as mortgage interest rates have remained low. But with the increase in jobs across the country, and the Federal Reserve confirming that they will be tapering their bond buying, it’s expected that mortgage interest rates will rise gradually in 2014, but what can we really expect from the Real Estate market when mortgage interest rates start going up?
The Market Will Switch Gears
Right now, at the end of 2013, we are currently experiencing a sellers-market thanks to low mortgage interest rates. There are more buyers out there who have been pre-qualified for a mortgage and are searching for Orange County Real Estate for sale. Thanks to the increase in buyers on this means that sellers can get more net income for their homes.
With mortgage interest rates expected to go up in 2014 we will see the Real Estate market in Orange County, and across the United States, shift to a buyers-market because, there will ultimately be fewer buyers who are able to afford to buy Real Estate across the country, due to rising mortgage rates, and this means that there will be more inventory to choose from for home buyers.
Will The Growth Continue?
Anyone who follows the Real Estate market in Orange County can expect to see continued growth for Real Estate in 2014 since an improving economy and lower unemployment almost always lead to the loosening of mortgage credit, an increased inventory of homes and increased prosperity as more people will be taking advantage of homes for sale across Orange County to buy their first time homes or investment properties.
To learn more about the latest Real Estate news, or to view Orange County homes for sale, contact Fred Sed & Associates today by calling us at (949)272-0125