Interest rates and how they affect the consumer.

Interest rates and how they affect the consumer.

I’m looking forward to a great 2019 in the real estate business but much of that will be affected by which way the rate(s) swing. Good,bad or indifferent this is the way it goes. Many of the first time homebuyers will reach out to me and quote the rate before they look for a house. Many of the lenders I do business with periodically send out information speculating which direction they will go. A 1% swing in either direction can be the difference between buying a home OR staying in an apartment.

I wish it was not so cut and dried but this is what we have. Credit scores play into interest rates as well. Buyer’s need to be educated to know they have is to have a great credit score to get a great rate. I’ve known many potential buyer’s who have gone thru credit repair services at a cost to them. Sometimes the money they spend on these services will reduce what they will need for their down payment.

I will make it my mission to make sure and explain how important a credit score is and to let my buyer’s know that a better score equals a better rate. The lower the rate the higher the buying power(sales price). With a reduction in inventory in this area prices have risen substantially. Every dollar counts. This could be the difference between buying a home and having to wait. My hope for 2019 is that rate(s) will head backward and the inventory pick up. There are so many GREAT buyer’s who want/need a home. Now is the time.