Impending Interest Rate News

By
Real Estate Broker/Owner with Watters International Realty #0567369

 

 

Friends and Clients —

We're in for a very competitive stretch in the real estate market.

First off, mortgage rates have started increasing.

For the first time since last summer, the 30-year average mortgage rate is now over 4%.

This follows a long period when mortgage rates were near record lows.

And this latest increase might be more than just a temporary bump. Some experts, including Freddie Mac's deputy chief economist Len Kiefer, predict we've seen the last of sub-4% mortgage rates, thanks to strengthening inflation and broad-based economic growth.

Second, mortgage applications are also increasing.

Applications were up in January by 4.1% compared to last year.

This has been led by people looking to refinance their homes, while mortgage applications by homebuyers remained at steadier levels.

Third, housing supply continues to be increasingly tight, with 10% fewer homes on the market than a year ago.

So what do all of these numbers mean for you?

The growth in mortgage rates shouldn't affect the number of eager homebuyers very much because there is so much more demand than supply right now.

However, this rise in mortgage rates might actually reduce the number of homes for sale even further.

The increase in mortgage applications for refinancing bears this out.

Homeowners are looking to lock in the current, still fairly low mortgage rates.

When mortgage rates increase further, homeowners will have less of an incentive to sell their current home and buy a new home, which will require a mortgage at a new, higher rate.

Does this mean you should worry about these new mortgage rates?

Not necessarily.

For example, if you're looking to buy, the biggest impact will still be the number of homes in The Greater Austin Area market.

Fortunately, a bunch of great homes have recently come on the market. You can see them all here:

Click here for all available Greater Austin Area homes for sale

And if you're looking to sell, the current conditions make it very easy for you to do so at a top price.

To get an idea of what your home is worth in the current market, check out this home value calculator that takes into account recent Greater Austin Area sales:

Enter your street address here to find out what your home is worth

Finally, if you want an even more accurate estimate, give me a call at 512-829-8000. I'm here to help.


Have a great day,

Chris Watters

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Topic:
Real Estate Market Trends
Location:
Texas
Groups:
Active Rain Newbies
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Texas Real Estate
Austin Metro Area
All Thing's Texas
Tags:
interest rates
real estate market trends
mortgage
mortagage application

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Rainmaker
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Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

It appears the bases are loaded and every scenario you've addressed is sure to bring in a run. Way to keep the prognosis for the near term easy to understand for the consumer. Well Done!

Feb 22, 2018 02:54 PM #1
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Rainmaker
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Christopher Watters

Austin Realtor (512-829-8000)
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