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Rainmaker
846,325
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

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%!

Nov 07, 2016 08:51 PM
Rainmaker
5,571,804
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I think some of those fence sitters will finally move....

Nov 07, 2016 08:45 PM
Rainmaker
522,161
Greg Cremia
Shore Realty of the Outer Banks - Nags Head, NC

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.

Nov 07, 2016 07:53 PM
Rainmaker
4,107,196
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Interest rates might rise, but the FED won't allow all the markets to implode by raising them all in one swoop.

Nov 07, 2016 07:20 PM
Ambassador
5,401,124
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Already raised them, but not likely to raise much.

Nov 12, 2016 01:35 PM
Rainmaker
4,007,466
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Time will tell.

 

Nov 09, 2016 12:14 AM
Ambassador
4,312,759
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

John Peak - that's the human nature! When it sails smooth, no one wants to do anything! They act only when panic sets in.

Nov 08, 2016 03:07 PM
Rainmaker
3,985,855
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It will not.  But rates won't explode either and they do need to go up

Nov 08, 2016 02:06 PM
Ambassador
3,750,203
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

It will go up slowly.

Nov 08, 2016 01:58 PM
Rainmaker
4,799,481
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

No.

Nov 08, 2016 06:15 AM
Rainmaker
1,386,168
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

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.

Nov 08, 2016 06:03 AM
Ambassador
970,386
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MT, NC, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, WV - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

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.

Nov 08, 2016 05:45 AM
Rainer
22,557
John Peak
Get Your FREE BPO Company List - Adelaide, WA

I've seen a lot of people refer to how high interest rates got back in the seventies to make the point that interest rates won't affect the real estate market that much.   In my opinion there are almost 20 Trillion reasons why this time it's much different

http://www.usdebtclock.org/

 

 

Nov 08, 2016 01:47 AM
Ambassador
3,051,660
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I am with Marco Giancola on this ... I purchased my first home @ 18+%. 

Nov 08, 2016 01:42 AM
Rainmaker
795,632
Susan Laxson CRS
Premier Sotheby's International Realty - Naples, FL
The Michelle Thomas Team

Lots of good responses showing a depth of experience.  Time will tell and hopefully the fence sitters won't be caught still sitting.

Nov 08, 2016 12:27 AM
Rainmaker
919,073
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Ah, how soon we forget - the interest rate at one time was well over double digits - I think the highest was something like 17%?

Nov 07, 2016 11:13 PM
Rainmaker
1,459,427
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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.

Nov 07, 2016 11:01 PM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

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?

Nov 07, 2016 11:00 PM
Rainmaker
555,828
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

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.

Nov 07, 2016 10:52 PM
Rainmaker
1,639,426
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

We will see a slight dip until the shock has become absorbed

Nov 07, 2016 10:51 PM
Rainmaker
821,117
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Real Estate market is famously cyclical; so even an "implosion" would only be temporary. 

Nov 07, 2016 10:40 PM
Rainmaker
2,640,732
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Economy is fragile despite what politicians pitch etc. They stayed low becasue if they didnt, we would be in worse shape

Nov 07, 2016 10:23 PM
Rainmaker
4,202,677
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

People need to buy and need to sell!

Nov 07, 2016 10:15 PM
Rainmaker
1,157,485
FN LN
Toronto, ON

Depends on how much it raises interest rates and whether there are other factors at play.

Nov 07, 2016 10:03 PM
Rainmaker
4,093,738
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Real buyers buy.  

Real sellers sell.  

Life and real estate involve a lot of pendulum swinging.  

Nov 07, 2016 09:41 PM
Rainmaker
887,947
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

History has proven exactly the OPPOSITE happens.

But there are many underlying reason not apparent to most consumers.

 

Nov 07, 2016 09:40 PM
Rainmaker
3,329,723
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

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

Nov 07, 2016 09:32 PM
Rainmaker
3,069,984
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

no

Nov 07, 2016 09:14 PM
Ambassador
1,616,354
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

People will still buy and sell homes regardless

Nov 07, 2016 09:06 PM
Rainmaker
1,722,050
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

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.

Nov 07, 2016 08:58 PM
Rainmaker
6,597,738
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

No. Smart consumers are taking advantage of the low mortgage interest rates that are now available.

Nov 07, 2016 08:41 PM
Rainmaker
4,433,683
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I do not know.

Nov 07, 2016 08:00 PM
Rainmaker
2,023,230
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

No  not unless other costs start heading upward also

Nov 07, 2016 07:56 PM