21 September 2015
Rising Interest Rates a Concern in Tooele UT
Rising interest rates are a concern in Tooele UT. In fact they are a concern wherever folks are buying or selling houses.
If you are buying a home, an increase in the cost of a mortgage can determine what you can qualify for.
Thinking of selling? Each time the interest rate goes up, the pool of qualified buyers shrinks. The only way to keep the same number of buyers would be to lower the listing price.
The following article by Selma Tripp, chief economist @ Trulia give a pretty good explanation about what happens in the real estate market when home mortgage rates go up.
Enjoy!
While the Fed decided to keep rates
where they are last week, Trulia's chief economist Selma Hepp takes a
look at what a possible increase would do to the mortgage market, and by
extension, the new home sales market.
The Fed will obviously move
with deliberation and caution, and when it does decide to raise rates,
it would be nominal, probably about 25 basis points. While this increase
wouldn't stop people from buying a home, it would effect the type of
home they could buy, Hepp says.
While most experts do not
anticipate mortgage rates to move much beyond 4.5% over the next year,
46% of Americans who would ever buy a home say that rates beyond 5%
would discourage them from buying their first or next home.
Click over to TruliaTrends to learn more about America's reaction to the possibility of rising mortgage rates:
Need more information about rising interest rates being a concern in Tooele UT? Want to know what you could be doing about it, call me; Berna Sloan 435-840-5029.
Originally posted on tooelehomes4sale.com