Do Mortgage Rates Really Effect Home Sales?
If you ask a renter why they are choosing not to buy a home right now, an answer you will probably hear is “rates are too high.” If you asked a renter in the summer or fall of 2020 why they decided to buy, you would probably hear “rates were low.”
The highest national average a 30 year fixed rate mortgage has reached since January 2007 is 6.70% which was in July 2007. Believe it or not, Wisconsin home sales WERE NOT at an all-time low. The fewest monthly home sales Wisconsin had in this time period did not come until over a year later in January 2009 (“30-Year Fixed Rate Mortgage Average in the United States”).
The lowest national average a 30 year fixed rate mortgage has reached in the same time period is 2.68% in December 2020. Home sales WERE NOT at an all-time high. The most monthly home sales Wisconsin had in this time period came three years prior in June 2017 (“Wisconsin REALTORS® Association: Wisconsin Housing Statistics”).
While rates do have an effect on home sales, it is not a direct relationship.
DO NOT LET CURRENT RATES DETER YOU FROM BUYING A HOME!!!
If you are entertaining the thought of buying a home, condo or multi-family be sure you work with a Buyer’s Agent (aka, an ABR) – Accredited Buyer Agent … that would be me, Diana Dahlberg! I have been helping buyers find their dream home or investment property since 1994, in SE Wisconsin (covering Kenosha, Racine, Walworth and southern Milwaukee counties) … and I would be honored to be Your Realtor for Life!
If you are looking to get a home loan in today’s market call:
Robin Tegel, Mortgage Loan Originator, Northshore Bank O: 262-787-6806 | M: 414-573-5810 | NMLS # 1868390
Sources
“30-Year Fixed Rate Mortgage Average in the United States.” 30-Year Fixed Rate Mortgage Average in the United States (MORTGAGE30US) | FRED | St. Louis Fed, 6 Oct. 2022, fred.stlouisfed.org/series/MORTGAGE30US.“Wisconsin REALTORS® Association: Wisconsin Housing Statistics.” Wisconsin REALTORS® Association: Wisconsin Housing Statistics, www.wra.org/HousingStatistics. Accessed 6 Oct. 2022.
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