In 2015 we’ve continued to see LOW mortgage interest rates which have hovered near 4% for a 30-year fixed mortgage loan and this has made the current Real Estate market a sellers-market because you can get the best price for your home.
What Happens When Rates Increase?
When mortgage interest rates increase there will actually be MORE inventory available to choose from since there will be fewer buyers on the market who will qualify for mortgage loans.
Another consequence of a mortgage interest rate increase is that prices will also soften as well and this means you will have to lower the price for your home compared to what you may be able to ask for it if you sell now.
When Will Rates Increase?
Mortgage interest rates are predicted to increase by this fall and thanks to recent interviews with Federal Reserve Chairwoman Janet Yellen we know that mortgage interest rates could rise by 1% or more because the economy is strong, jobs have increased, and every economic analyst feels that it’s time for the fed to start rising rates.
Rates Won’t Continue Falling
A couple of years ago most buyers and sellers waited with the hopes that rates would fall by another .5 percent to 1%, but rates cannot go lower any longer.
Thanks to great interest rates over the last 15 years millions of people have been able to buy homes after mortgage interest rates peaked at 18 percent back in the early 1980’s, but with rates predicted to increase to at least 5.1 percent in the coming months we could see home sales decline by 4 percent, and this is why you should sell your home NOW, if you want to sell it for the most money.
Contact Fred Sed & Associates
To get started with selling your home contact Fred Sed & Associates today by calling us at (949) 272-0125 or click here to connect with us through our website.