We’ve seen interest rates rising recently.
Rates on 30-year fixed mortgages have gone up almost a full percentage point since reaching record lows six months ago.
REALTORS and consumers are understandably anxious about what this
means for the real estate market. While there is currently no evidence
of rising interest rates slowing the economy, they will invariably have
an impact on loans.
I believe there is reason for hope.
Although it’s likely that fewer
people will refinance, since they already have low interest rates, banks
will still need to make money. As a result, they may need to increase
loan originations. To do so, there is a very good chance that lenders
could ease credit standards away from over-stringency to ensure the
greatest number of qualified buyers have access to mortgage interest.
While you may be hearing concerns from your clients about rising
interest rates, don’t despair. Tell your clients that it’s not
necessarily bad news for real estate if rising interest rates are
balanced with opening credit to more consumers.
We’re hopeful—and it’s more than just a glimmer—that if the economy
can recover as much as it has under tight credit conditions, it may do
even better as credit steadily returns to normal.
Author:Michelle Cantrell Phone: 417-860-6505 Dated: July 17th 2013 Views: 381 About Michelle: Michelle is a native of Southwest Missouri and has twenty-five years of experience in selling real e...
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