How many warnings will it take before we believe that these low interest rates can't last forever?
We haven't seen a big jump in rates but the little ups and downs will keep nudging rates upward. The rates will have to rise as the feds change the discount rate charged to lenders. As the lender rate rises so will the interest rates charged to mortgage borrowers.
The time table for the rates to rise will be slow but sure over the end or the third and forth quarters of this year.
This will be driven by the need to decrease the national debt. This will also reduce the number of available buyers, based on the changes in lending practices. What impact will this have on the local economies, your business and sales? None of us have crystal balls...but the future of real estate sales and selling inventories will remain within a few percentage points.
The number of homes on the market could be impacted by foreclosure inventories. Homes that are not considered distressed properties will sell lower, with less than expected selling prices. Their will be growth pockets throughout the United States. These pockets will be based on the local economy, housing inventories and the economy that supports them.
Many communities will continue to struggle with budgetary issses. This will continue to put pressure on governmental agencies and the federal budgets to help fund community projects. Interest rates can not do anything but go up in near term. Based on knowing this information in advance..your options to purchase should be cosidered to meet your time frame, interest rates and the availabiltiy of properties within your price range.
We many never see these interest rates for years. In the lat 1980's rates hit 18 to 21 percent. No one ever thought that would happen either.
What do you think is going to happen with interest rates?
Gary White, Flexit Realty 616-784-2360 www.FlexitRealty.com