Rising interest rates have everyone asking – how will this affect my ability to buy or sell a home?
We are turning to the experts to find out what we may be seeing in the market. Hi, I’m Sherri Echols, Broker Associate with RE/MAX Bryan-College Station.
I help sort through all the uncertainties in the market and give you facts to help you make an informed decision about your home. (Use Slide Here)
Let’s take a look at the past so we can have a better idea of what our future might look like. If we look back at
data from October of 1993 provided by Freddie Mac, we see that there was a comparable spike in mortgage rates.
At that time we saw no negative impacts on home prices and they still appreciated by 8%, but there was a decrease of 11% in home sales that same year. So many people were likely priced out of buying a home due to market conditions.
Today, we are looking at a very different environment though because we are not expected to see the rate increase that we saw from October 93 to December 94 where it went from 2.38% to 9.2%.
Overall we see about a 2% impact on home sales, whether positive or negative. If we take out the outliers of 05 and
06 which lead up to the housing crisis, we see that overall rising rates don’t have a large impact on home sales.
That’s what the experts are seeing! If you have any questions please reach out to me and let’s see if now is the best time for you to make a real estate move.
I’m your community market leader Sherri Echols, a helping hand for a happy home.
