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Don't Let Rising Interest Rates Create a Frown on Your Face

By
Real Estate Agent

 

 

I had to smile early this morning when I saw images of royal wedding flower girl,  Grace Van Cutsem, as she covered her ears and frowned.  It was the roar of the crowd during William and Kate's fleeting first kiss that had caused the commotion. 

At first, I had an image of little Grace hearing some American Homebuyers were still sitting on the fence, instead of seriously knuckling down and finding a special home.  That they were going to miss amazing opportunities provided by low prices, low interest rates, and great inventory.

Had Grace read an article by the New York Times, which warned that even as prospects for the U.S. economy brighten, consumers are likely to confront a new financial burden - a sustained period of rising interest rates.

If you are a serious homebuyer, dallying on a home search, while waiting for potential lower prices, you could be undone by any rise in interest rates.  Increased interest rates can increase mortgage payments substantially.  Do not let your home buying opportunity be as fleeting as that royal first kiss! 

Read New York Times article regarding "Likely Rising Interest Rates" to learn more about the threat of a sustained period of rising interest rates.

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Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

Myrl, there is no "right" time or "wrong" time to purchase a house.  It should be a well considered investment and a place of safety, refuge, and a "home", whatever that means to you. We really enjoy helping people through this process, as I am sure you do, too.  And you are right on, a rise in interest rates will negate  savings on price very quickly and for a long time!

Apr 29, 2011 09:56 AM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Myrl,

There are going to be a lot of people kicking themselves in the behind for not taking advantage of the lowest interest rates ever. It's not like we haven't warned them.

Rich

Apr 29, 2011 11:18 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Terry Bonnie - In the bast 29 years of this business I have seen far more "right" times to buy a home than bad ones.  In my early career, interest rates were at 18%.  However for those able to assume existing loans in the 7% to 10% range, things weren't too bad.  I wish things hadn't turned out as they did for homebuyers that bought in 2005 and 2006.  Declining values significantly hurt a number of them.  However, prices are currently a value, and coupled with good inventory and low interest rates, a perfect storm of opportunity exists.

Richard - We can lead horses to water. . .We cannot make them drink!  Fortunately, enough of them will:-)

Apr 29, 2011 11:28 AM
Chris Canfield
Coldwell Banker Residential Brokerage - Tucson, AZ
Homes for Sale in Oro Valley and Tucson, Arizona

Hi Myrl - Very cute analogy.  My wife enjoyed seeing the little flower girl covering her ears this morning more than royal couple.  : )

Apr 29, 2011 03:37 PM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Myrly - interest rates have a long way to go before I begin to frown ..... having lived through 20% interest rates in the past to-days rates are like free money.

Apr 29, 2011 04:54 PM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Myrl,

What a lovely analogy and very current.  You are very clever.  A

Apr 30, 2011 06:33 AM
Judi Boad
ACCURATE REALTY GROUP - Seattle, WA

Hi Myrl~

That is some photo! I love the way you plugged it into your market report and call to action! It was a pleasure to read.

Have a happy day before May!

Apr 30, 2011 12:00 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Chris - That little flower girl warmed my heart.  All in all, I was amazed the children in the royal wedding behaved so well.  That was a monumental pagent for those so young.

Kathy - I agree about the wonderfully low interest rates we currently enjoy.  Still, those sitting on the fence hoping for lower home prices can be overdone with higher mortgage payments caused by any bump in interest rates.

Apr 30, 2011 01:18 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Ron and Alexandra - I'm glad you liked it!  When I saw that little girl, I couldn't resist:-)

Judi - Can you believe it is the last of April already. . .This year is a third over:-)

Apr 30, 2011 01:20 PM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Myrl,

I'm thinking it was a long day for poor Grace, regardless of interest rates.

 

Apr 30, 2011 04:03 PM
Martha Brown
Long & Foster Real Estate, Inc., Annapolis MD 21403 - Annapolis, MD
Your Homes Around Annapolis Agent

That little frown was seen around the world and those who do not at least see if they can take advantage of these low rates will be frowning as well. :0(

May 01, 2011 01:29 PM
The Scott Loper Team Bux-Mont Premier Properties
Keller Williams Real Estate - Montgomeryville - Lansdale, PA

Hi Myrl,

That picture is hysterical!  That girl seemed to have a frown on her face every time I saw her.  Yes, she should have to deal with the economy and the real estate market is she wants something to frown about.

Lisa

May 03, 2011 10:23 AM
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