Will Rising Interest Rates Reduce The Number Of Buyers?

Reblogger Karen Baker
Real Estate Broker/Owner with Sunset Beach and Beyond Realty

We have secretly been praying for the past year for the interest rates to start rising so our buyers would get off the fence thinking the bottom of the market hasn't happened.  Guess what!!??  

Last year was the year to buy at the lowest rates!!  Too late folks.  Should have bought in 2012....

Better hurry up and get buying because the RATES ARE GOING UP!!

Thanks George Souto!!

Original content by George Souto NMLS #65149

Will Rising Interest Rates Reduce The Number Of Buyers?  Redfin recently conducted a survey of Home Sellers, and I found the results interesting.  The survey stated Sellers are concerned with the recent rise in Interest Rates, because they feel rising Interest Rates will reduce the number of Buyers.  I would argue the opposite.

Most Borrowers I am presently Pre-Qualifying for Mortgage are telling me they want to purchase a home before Interest Rates rise higher.  They are concerned if they wait much longer to purchase, they will have to pay higer interest rates as Interest Rates continue to rise.

I have always believed the Housing Market would not see an increase in Buyers until Interest Rates started to rise.  That was the topic of a blog I wrote back on October 29, 2012, and in my opinion my theory is being proven correct.  Greed always plays a major role in financial decisions, and some Borrowers did not want to purchase fearing they would not be getting the lowest Interest Rate possible.  Well those who waited made the wrong decision.  Their greed for lower Interest Rates, than the already ridiculously low Interest we had, is now costing them money and buying power.

Interest Rates are continuing to rise, and greed will be a motivating factor once again in the decision to purchase, only now in the reverse of what kept Buyers from purchasing before.  Now Buyers are beginning to panic they waited to long, and want to purchase not only before Interest Rates increase further, but also before Home Prices go up further as a result of increase demand for houses.

So Will Rising Interest Rates Reduce The Number Of Buyers?  Not from what I am seeing.  The rising Interest Rates is motivating Buyers to purchase instead of waiting.  Rising Interest Rates are creating a rise in demand, and rise in urgency from Buyers.

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum,# Haddam,# East Haddam,# Chester,# Deep River, and# Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Will Rising Interest Rates Reduce The Number Of Buyers is a great question.  I'm still busy, busy so I'm thinking it's because buyers are seeing rates increase and are jumping off the real estate fence.  Have a great day in all you do Frank and Karen!

Aug 13, 2013 11:25 PM #1
Rainmaker
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Karen Baker
Sunset Beach and Beyond Realty - Sunset Beach, NC
Professional Help with Rapid Responses...

John ~ Same here .. Keep Busy and have a Great Day!!

Aug 13, 2013 11:31 PM #2
Rainmaker
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Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Seems to me that rising rates will get on-the-fence buyers to pick a side quickly.

Aug 14, 2013 04:18 AM #3
Rainmaker
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Karen Baker
Sunset Beach and Beyond Realty - Sunset Beach, NC
Professional Help with Rapid Responses...

Wayne and Jean ~ Hope it's to buy!!

Aug 14, 2013 05:09 AM #4
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Rainmaker
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Karen Baker

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