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Are low rates hurting the housing market?

By
Real Estate Agent with John Franc Realtor ABR Vandyk Group NJ License - 1537463

I just wanted to kick this thought this around!  Are the record low mortgage rates hurting the housing market recovery?  On the surface it would seem that they should be helping but are they?  Just think if the rates started to creep up ever so slowly.  This could create a case of urgency to all those buyers that are just sitting on the fence.  I believe that the "Fear of Loss' is one of the best motivators in this industry.  Perhaps this could just stimulate sales to start!  The negative is that higher rates will help decline prices even lower.  Seems like it's a "Catch 22" situation to me!

Michele Miller ~ REALTOR®, LMC, HSE, CHS, SRES, CMRS
ERA Key Realty~Worcester County Realty Group - Worcester, MA
'Helping You Make the Best Move"

John,

You could be right! Interest rates at their all time low, but yet there should be more buyers out there!

Jun 28, 2010 08:24 AM
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

John,  Without a doubt......every time I have been in a stable interest rate market for extended period of time I have seen consumers develop a 'come see, come saw' mentality and totally sit on the fence!  It is so frustrating because they are, in effect, being their own worst enemy and 99% will come to rue the day for their complacency.

And, it seems that the more real estate agents and mortgage peeps tout the "historical low rates" the more the average consumer thinks we are giving them a sales pitch.  Can't win for losing!

Jun 28, 2010 08:28 AM
Valerie Almanzar
Your Casa Team - Keller Williams Realty - Rio Rancho, NM
MBA

I can definitely see what you mean. Fear of loss is a pretty good motivator. So what if the buyer is afraid of losing by not wiating to see if the rates go even lower?

Jun 28, 2010 08:31 AM
John Franc
John Franc Realtor ABR Vandyk Group - Manahawkin, NJ
Honesty & Integrity in all I do!

Good point Valerie, but the buyer can only gain if the rates go lower but only lose if they rise!

Jun 28, 2010 08:49 AM
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

John, I encourage you to make this post public so I can re-blog.  I think there is valuable discussion here and would love share it with consumers.

Jun 28, 2010 09:07 AM
John Franc
John Franc Realtor ABR Vandyk Group - Manahawkin, NJ
Honesty & Integrity in all I do!

It's on public now!  Good Luck!

Jun 28, 2010 09:19 AM
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

John, it still won't allow a re-blog.......guess you have to check that little box!

Jun 28, 2010 10:00 AM
John Franc
John Franc Realtor ABR Vandyk Group - Manahawkin, NJ
Honesty & Integrity in all I do!

Hi Deborah, the box is checked and i reblogged so you should be able to also!  Sorry about that!

Jun 28, 2010 11:08 AM