FLORIDA REAL ESTATE MARKET AWAITS SEPTEMBER INTEREST RATE ADJUSTMENT

Predictions are that the Fed will again lower the Interest Rate in September.  

What affect could this change have on the Real Estate market, and where do we go from there?

There will be a great deal of refinancing from ARM’s to 30-year fixed loans.  Those who bought in the past with the intention of reselling before the interest rates increase will be anxious to refinance for 30-years at a low interest rate.  Those who will want to refinance will face more strenuous and realistic pre-qualification criteria, and may need to bring cash to the table to get their loans approved. 

That will be a big change from the recent mortgage loan approval standard was the borrowers ability to write his/her name or make their mark.

Anticipate a surge in property sales, as buyers and investors will scramble to take advantage of a lower interest rate, as no one expects the interest rate to fall below the September adjustment.

On the flip-side, even if the rates do not fall in September, remain steady, or even increase slightly, the affect on buyers and investors should be the same as if they fall - to buy that mortgage before the rates begin to climb insanely, as they have in the past.