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It may bring a few forward, but, overall, it won't help sellers. And, depending upon the rate (basis points) of increase and the speed, it could very well hurt.
I pay at minumum 1200/mo less in rent than it would cost to buy. I'd rather save that ~$15K a year extra and wait for prices to decline. Even with higher interest rates, a large down payment crushes the effect the high interest rates would have.
Generally when something gets more expensive, people buy less of it. So I can't see how increasing mortgage rates will possibly help sellers. It will probably force those hoping for unrealistic prices for their homes to lower their listing prices further, though. So in that sense it could help the overall market...but I think it's going to be a very slow recovery for the home market in general.
I don`t think higher rates will stop people from buying a home because years ago rates were high and people still bought homes.
Sorry but your statement is nonsensical. In general, as mortgage rates go up, the pool of buyers decreases. Fewer buyers can qualify for a higher rate. Fewer buyers want to pay higher monthly payments even if they can qualify. Fewer buyers means lower prices. It is pretty simple: supply vs. demand. How hard is this to understand??
it's the jobs, location, and economy that will determine the real estate market in the next few years. I dont see rates moving up by more than 1%.
I agree with you that jobs and location determine local real estate markets, but you are delusional if you don't see rates moving up more than 1% over the next few years. The Federal Reserve can't print free money forever without eventually paying the piper with higher interest rates.
I am not a homeowner now nor anytime in the next year or two. But I would advise anyone who wants to sell their home into an unfavorable market had better get ahead of their competition by pricing appropriately and lowering their price as aggressively as needed until they find a buyer. Or risk chasing the market down another 10-15%.
Won't buyers want to lock in asap before rates get higher?
Short answer: No. Buyers are waiting on the sidelines for prices to level off and actually start to increase. There is not much sign of increased sales prices anywhere.
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