It's Monday again! The Monday Morning MARKET PULSE doesn't look all that bad today. The powerful message is not in the numbers in THE PULSE this week. This past week saw the most important development for residential real estate in the last 12 months! Interest rates went UP by almost a full quarter point. What does that mean for your buyers and sellers?
Buyers: The roller coaster that you were riding and waiting for the "bottom" just took a predictable JUMP! We know, most of us, that interest rates ALWAYS go down slowly and go UP quickly. So if you were looking at homes around $300K last week, your new monthly payment just WENT UP by about 55 bucks per month! The payment that you were budgeting for last week now buys you about $10K less home. OUCH.
Sellers: While you were waiting for Buyers to get antsy and make the offer for your home at the price that you were HOPING for, your home just got significantly more expensive. And you didn't do anything? What will this mean for your home's value should interest rates continue to climb? How important is pricing your home IN the market? Is your price comparative, competitive or is it actually compelling?
Did you miss the "bottom"? Ask your REALTOR about the impact rising interest rates could have on the sale of your home.
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