High Interest Rates!!!

By
Real Estate Agent with Marshall Team - Remax Results

With all the recent events going on in our economy the biggest concern I hear in the Real Estate Market is Interest rates rising.  As this does have truth behind it and the average rate for consumers across the country is ranging from 5-6% with the main variance being credit score.  This may seem like a "high" rate, which it is compared to the last 11 years as rates stayed below 5% and dipped as low as 2.75%.  However, from 1991 til 2010 rates were between 5-9.64%.  With this being said the current market rates of 5-6% are still a great rate considering the last 31 years worth of data. Fully agree that people that state in the '80s rates were 18.45% (as of Oct' 81) as they were but those rates haven't been experienced in over 30 years.

 

What does this mean for buyers?  Most people that have been qualified in the past and didn't purchase for 1 reason or another will most likely find themselves in a situation where their budget is no longer what it was.  This can change a lot of aspects of the process for a lot of clients.  Location, amenities, size, and loan structure can all be affected by the rate increases.  Having a lender/agent combo that work together and can put together creative loan options will be a must to have a leg up in a market that has short supply and demand with tighter budgets.

 

 https://www.marshallteamsells.com/

Comments (2)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Rising prices are part of the ebb and flow I suppose but I do hope things level off pretty soon just because it would be nice, you know

Apr 26, 2022 08:10 PM
Justin Marshall

Laura, I agree that rising prices and interest rates are all part of ebb and flow.  As a society we haven't experienced the inflation rates we currently are and one of the best ways to offset the spending is to increase interest rates. This is all part of our past history as well. 

Apr 27, 2022 01:42 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Justin, it may seem high for those just starting to look for their first home, and they may get pushed out, but those that have been in the market remember days above 15%.

Apr 27, 2022 09:16 AM
Justin Marshall

Joan, I understand as the highest recorded interest was in Oct of 81 at 18.45%.  Personally I couldn't imagine being in a market with that high of rate as it would truly limit most of todays current buyers from even buying.  Now with that being said remember that the 80's was the last era that the US Dollar actually had a great face value and the cost of goods wasn't through the roof.

Apr 27, 2022 02:07 PM