With several key economic reports being released yesterday, and not showing the exciting news that everyone hoped, there is new optimism for those hoping to buy or sell a home even in the last quarter of 2016. You see, everyone was expecting interest rates to start going up… and maybe quickly. But with those reports not showing what was expected those ideas have changed. Now, it looks like interest rates will stay low at least for the rest of 2016.
That’s good news for both buyers and sellers.
You see, when interest rates go up, it means buyers can’t qualify for as much. And when buyer’s can’t afford to pay as much, guess what happens to home sale prices? That’s right… they soften (mean that prices start to drop). When prices drop due to high interest rates it does NOT make the cost of the home cheaper for the buyer, it just puts less money into the seller’s pockets.
As someone who represents buyers and sellers, low interest rates is something I like! It keeps sales activity humming along – homes keep selling and prices stay stable.
So, boys and girls – if you’re thinking of buying or selling a home – or maybe both – in the near future, the last quarter of 2016 might be a good time to do it. I’m hear and ready and waiting to help!