Interest rates have been gradually increasing in recent months. It may hurt the housing market . I had a buyer who looked at homes last year and decided to wait . The prices of homes in the community that she likes have increased and rates are higher. She may not buy a house and will continue to rent.
Most agents these days have the buyer talk to a lender before showing them homes so they know that the buyer can quailfy for a certain price range based on credit and income.
The rates have increased in the last year so if you were looking at homes based on last year's rates, you may want to see if their income has increased or whether they have more money for down payment or show them lesser priced homes.
Another thing that has happened is changes to FHA . Please have your buyers talk to a lender again because of changes that took place on June 1.
We have no idea what is going to happen with interest rates so it may be a good idea for buyers to talk to lenders and see if they can lock in rates when they apply for the mortgage . Buyers have to specially careful when it is a short sale. It may take several months to close.
Buyers buying new construction should also be careful because you may not be able to lock in the interest rates if it will take too long for completion. Check with the lender and see if the builder has some program.
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