It seems to be the hot topic of conversation around the Spokane Real Estate Market (http://www.stacikrant.com/). How low will rates go? It seems they are already climbing below 6%, which has been a catalyst for the Market in the past, but will it be this time? Has past low rates and all the negative publicity made even the low rates to come not enough?
It is so interesting to listen to all the speculation and thoughts on current and projected rates. I sometimes wonder if we put to much credence into mortgage rates, or maybe not enough. When I look at the Spokane Market and start crunching the numbers from years past I come up with some interesting observations. The market is only down 4% year over year with average home prices increasing over 10% in the same timeframe. The real number that may have a big impact is the amount of homes on the market, up 26% year over year. So what does this mean in correlation to mortgage rates decreasing? For the Spokane Market the hope is that the increase in homes on the market will turn into an increase in sales.
What does it look like in your market? What impact do you think Mortgage Rates will make?
I hope decreasing rates will have a positive impact on your Market and mine in Spokane, WA.