Hi there everybody,
Wow, tuff week for mortgage rates. Unfortunately, rates are continuing to climb almost daily. Rates have gone from 6.25% to about 6.625% in less than 10 days. The reason is bad times for foreign stock markets in China, Japan, and Europe. It looks like it will get worse for a while, before if gets better. Already gun-shy buyers may continue to hold off.
According to market analysts, rates will remain at these higher levels through the summer. If I may suggest: This is a great time and maybe your last chance before summer officially starts (school summer vacation), to get a price reduction on your listings. Let your sellers know that unfortunately the market is continuing to change. Not only there are a high supply of listings, now higher interest rates are reducing the buyers' buying power. .
It's unfortunate the market has done that to sellers. But for your sellers that really want to or have to sell, this is the time to lower prices. Prices will probably go lower anyway (like they did 2 years ago when this happened), so sellers will either be ahead of the curve or catching up to it in October, wondering what happened.
Source: www.randmortgage.com
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