Rise in Rates – Incentive for Someby Tim Manni
The recent trend of rising mortgage rates has prompted some potential homebuyers to lock in an interest rate before they rise any higher. Many potential buyers are realizing that locking in now on a lower interest rate will save them more money in the long run, rather than waiting to buy a home until sale prices drop further.
This recent incentive has so far only appealed to potential buyers who are actively looking. Home sales continue to sputter, down 17.5% in April from a year ago. Home starts were down in May, as building permits declined 1.3% from April to May.
Experts agree that, as soon as home-sale prices bottom out and begin to rise, the housing market will see an influx of buyers taking advantage of low prices. Until then, many potential buyers seem content waiting for prices to keep falling.
For more information on mortgage rates be sure to read HSH’s Market Trends Newsletter.