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I like what Barbara Todaro said. It will definitely motivate a lot of people. And no it will not cause anything to "implode". It will still be low relatively speaking. I bought my first house in the early 80's @ almost 18%!
Ryan Huggins - Thousan...
Thousand Oaks, CA
Kathleen Daniels, Prob...
San Jose, CA
I think some of those fence sitters will finally move....
I can't wait for the rates to go up. Once rates start going up, the fear of loss kicks in and a whole lot of people will get off that fence before rising interest rates prices them out of the market.
Interest rates might rise, but the FED won't allow all the markets to implode by raising them all in one swoop.
Already raised them, but not likely to raise much.
Time will tell.
John Peak - that's the human nature! When it sails smooth, no one wants to do anything! They act only when panic sets in.
It will not. But rates won't explode either and they do need to go up
It will go up slowly.
I remember the days of 15% and 18% interest rates. People still bought homes. Back then, if you paid one extra principal payment a year, you could cut your loan from a 30 year to a 15 year. With the current low rates, you need to pay at least FOUR extra principal payments for the same to happen.
Raising rates will get people off the fence to buy. Real buyers buy and real sellers sell no matter the weather, rates, president or robot uprising.
It will have a very detrimental effect when the party of free money finally ends. There are a lot of adjustable rate student loans out there, and since we have such short attention spans, credit card debt is up too ----- when those monthly payments start increasing, they eat into buying power.
I don't think the Fed raising rates will affect mortgage rates (at least not immediately), but mid-long term it'll hurt.
I am with Marco Giancola on this ... I purchased my first home @ 18+%.
Lots of good responses showing a depth of experience. Time will tell and hopefully the fence sitters won't be caught still sitting.
Ah, how soon we forget - the interest rate at one time was well over double digits - I think the highest was something like 17%?
John Peak As Barbara Todaro said it may get some people off the fence. Historically, an increase in interest rates always seems to impact the market. I wouldn't say it will implode though.
This is not a serious question. My first home was a 14.875% adjustible rate with a 6 point cap. When I first got into real estate I sold 43 homes my first full year when the rates averaged 12%. What should that tell you?
When mortgage rates go up, it will impact what buyers can afford. We still have 30% of our sales cash. But the lower end may get even more priced out than they are now.
We will see a slight dip until the shock has become absorbed
Real Estate market is famously cyclical; so even an "implosion" would only be temporary.
Economy is fragile despite what politicians pitch etc. They stayed low becasue if they didnt, we would be in worse shape
People need to buy and need to sell!
Depends on how much it raises interest rates and whether there are other factors at play.
Real buyers buy.
Real sellers sell.
Life and real estate involve a lot of pendulum swinging.
History has proven exactly the OPPOSITE happens.
But there are many underlying reason not apparent to most consumers.
It is NOT ridiculous when the law rates are the only thing propping up this administration's economy. When they raise rates, look out for a small shock across the market
People will still buy and sell homes regardless
No not implode but there will be a scurry of buyers trying to get on board the last train leaving the station. There always is!
Their affordability goes down the tubes with each 1/4 rate increase. People just don't get it.
No. Smart consumers are taking advantage of the low mortgage interest rates that are now available.
I do not know.
No not unless other costs start heading upward also