Inventory is still low and home prices are expected to continue to rise. These are huge factors when we look at what the market may be looking like in the coming months.
Hi! I’m Sherri Echols, Broker Associate with RE/MAX Bryan-College Station. Let’s take a look at what experts have to say about how all this is going to affect the market and your ability to buy or sell a home.
The NAR says, “While higher short term interest
rates will push up mortgage rates I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30 year fixed mortgage rate to continue to rise, although we aren’t likely to see big jumps that occurred over the past few weeks.”
Inflation is driving this rise in interest rates, and as long as inflation continues we will continue to see a rise in interest rates.
Freddie Mac says, “History suggests that when rates rise, there is an initial bump in home prices, as many move quickly to buy a home before rates increase further.
But after that period, home prices slow. Freddie Mac analysis shows that a 1% increase in mortgage rates results in home price appreciation that is four percentage points lower.
For instance, a 1% increase in mortgage rates would change home price growth from 11% to 7%.”
This means that even though homes will continue to appreciate, we won’t see the high speed increase like we have seen in the last couple years.
All that translates to when the time is right in your life to make a move, it’s the right time, and I’m here to help you.
I’m your community market leader Sherri Echols, a helping hand for a happy home.
