Rise in Rates Spur Some Buyers Off Sidelines

Services for Real Estate Pros with Liberty Mutual

CNBC is reporting today that the last 3 weeks' spike in interest rates has caused some buyers to get off the sidelines, go to contract and lock in rates before they go even higher.

The fear of loss is an interesting thing. Buyers were fearful of making easy money just 3 & 4 years ago so they often made a deal with the devil to get into investment homes or primary homes way above their means. And here we see the fear of higher rates getting people to buy today.

So does that mean we raise home prices to "scare" people into buying? Well, if the other 25,000 home sellers in  Middle TN went along, it would probably work. But this is a market driven economy and that simply won't happen.

But it looks like some buyers are willing to pass on potential price decreases to ensure a low interest rate. If that's what's holding back your buyer, let me know and we'll get them a great rate. If your seller would like to assist with a rate buy down, I'd be happy to provide a rate in the high 4% range.

Comments (3)

Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

It is inevitable...people wait for the prices to drop and then the rates rise.

Jun 22, 2008 11:18 PM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Hi Kevin: It's good to hear that. The realtors and loan officers need a shot in the arm with some purchase activity. Obviously, we'd like the rates to be lower for our customer but it doesn't always work out that way! Have a fantastic day!



Jun 23, 2008 01:48 AM
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

It's good to know that I'm not the only one who sees the obvious. THe buyers looking for low prices have already missed the best opportunities. Now if they wait a little longer, they can get high rates to go with it. Most of the crowd plays follow the leader, that's why they always get caught buying at the top instead of the bottom.

Jun 23, 2008 10:35 AM