Rise in Mortgage Rates and the impact on Housing

The rise in Mortgage Rates and the impact on Housing

We are still ahead of the game from last year and housing has begun to recover, but we have to wonder with the increase in mortgage rates will this cause the slow warm up to slowly go cold again?  

July’s housing numbers came out August 23, 2013 and sales were down by 13.4 percent from June’s previous housing figure.  However, despite the slowdown in sales, it is still an improvement from last year.  In October 2012 the number of units sold was 365,000.00, so we are still up by a mere 6.8 percent.

Are rates beginning to impact buyers to hold tight on purchasing new homes?  The slowdown in the market was felt across the nation.  

• ·         Northeast sales were down to 5.7 percent

• ·         Midwest 12.9 percent

• ·         South 13.4 percent

• ·         West 16.1 percent 

Two regions are actually up from 2012, the Northeast was up by 10 percent and the South 16.4 percent.

Even with mortgage rates on the rise, it is still a good time to invest in real estate.  If you remember how high mortgage rates were back in the 1980’s, my parent’s mortgage on our house in Nashua New Hampshire was a whopping 15 percent!  I would take a 5 percent rate any day! 

Regardless of what you may think about mortgage rates impacting the housing, they will probably steer some people from buying and investing.  However, we have to look at the overall picture from a Global stand point.  We are becoming an ever more Global economy and while you may be on the fence on purchasing a home, despite all the news about the economy and rising rates, inflation real estate is still a solid investment. 

Don’t miss out on purchasing your dream home or investment home, because interest rates are still very low.  There is a shortage of homes on the market, but if you do wait too long you may end up regretting it a year from now. 

Still need some convincing?  The average median home sold in July 2013 for $257,200.00, the national average $282,300.00.  A year ago July 2012, average median home sold in July 237,499.00, national average 282,300.00.  Remember every real estate market is different so it is best to consult with a local real estate agent in your area. 

 

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