Sellers can seat waiting for prices to go up, this will only turn into a high purchase price, possible high interest rates and a high property taxe when replacing and existing a home.
Buyers could wait just to see property values and rates increasing.
There are some areas where we have seen stable prices and in some others prices steel going down. However, the move will be swift day to day.
For buyers it is important to capture the best rate available in advance. Increase rates decrees your buying power.
It's simple: The trend is higher. Rates will have their ups and downs, but rates are headed higher in the medium term. Lenders and Fannie and Freddie are jacking up rates and fees to compensate for risk.
Whatever happened to rates yesterday, the opposite will happen the next day. This will lead to very slight changes, in either direction, until the market continues to settle down.
The rates direction has meaningful impact, but focus remains on borrower qualification, raising concerns that, regardless of the rate environment, there may be a further increase in borrowers who are unable to qualify.
Qualifying for a loan today might not be as easy tomorrow with the changing values, changing rates and changing qualifications
Just as there is no obvious explanation for the drop in oil prices, mortgage rates are going to drop like a rock. That is and expectation and you can not bank on that.
By Oscar Matamoros/Marketing
Re/Max Metro Realty
http://www.homesbyarea.com/
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