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Will Hike In Mortgage Rates Help Housing Sales?
Thursday, January 5, 2012
When its time to purchase a new home, one of the first things we tend to look toward is what the mortgage rates happen to be at that time. Although these great rates have increased slightly on 15 year fixed mortgages, many are still unable to take advantage of them due to the poor state of the economy. Builders are still watching and hoping that these continued low rates will in some way help to boost their sales, yet the prospects are not very good.
Because market conditions are unchanged when it comes to availability of both new and used homes, there seems to be no shortage. Market conditions will usually play a vital part in any home buying/selling experience, yet if the finances are not available this simply means that there is no need to proceed, leaving both the buyer and seller at a loss.
Although location is everything and it does tend to improve the buyers chances of getting what they are looking for, at a price they can afford, that does little to help with their ability to get access to funds to make their payments in a weak economy. Even with rates that are unchanged, in a market that should make it easier for the purchaser, the ability to make the deal for some buyers seem out of reach.
Everyone looks for the right price when they are in the market to make a purchase, whether it's a car, boat or a new home. If I am looking to sell my house
, considering the state of the economy would be a deciding factor as to how much I hope to get it sold for and whether it is the right time to place it on the market. An overpriced house in a weak economy will be there for some time.
With a dismal look on the future of the housing market the possibility of building new homes seems to be a non starter, yet home builders are hopeful that if they build them, we will come. It is almost as though fingers are being crossed everywhere, in the hopes that a brighter future will prevail for the housing industry.
I have been told that when it is time to sell my house
I should make sure that I have a good real estate agent because good marketing might help get it sold that much quicker. I am not sure if a good agent could make a difference in a poor housing economy, however, with a professional on my side I am certain that things can only get better.