What Higher Interest Rates Could Mean To Tooele Real Estate

Interest rates UP

No one knows exactly what higher interest rates could mean to Tooele real estate, but it’s a good bet that if you are buying or selling a house in the area, it will impact how much you pay or how much profit you make.

I’m no expert on the cost of borrowing money, but I know that the lower the cost to finance a house, the lower the monthly payment is.

The fact that the reverse is also true makes this a very important subject to know about.

Since I admit to not knowing, and think that it could be important, I have selected some articles about mortgage rates for you to read.that could help us both.

The following articles are written by professionals, but don’t necessarily all agree, so be aware that this post is simply put together to give you some knowledge about what you should consider when financing a home in Tooele, or trying to determine if now is a good time to sell your property.

Enjoy.

What Are the Experts Saying about Mortgage Rates?

Mortgage interest rates have risen over the last few months and projections are that they will continue their upswing throughout 2017. What impact will this have on the housing market? Here is what the experts are saying:

Laurie Goodman, Co-director of the Urban Institute’s Housing Finance Policy Center:

“In 1984, 1994, 2000, and 2013, every time we have rate increases, we have increases in nominal home prices. We expect this to be more pronounced, as there is a big demand-and-supply gap at the present time.”

Scott Anderson, Chief Economist for Bank of the West:

“The tightening labor market, rising wage growth, high levels of consumer confidence and a millennial generation with a pent-up demand for housing should allow the housing market to weather the storm of gradually rising interest rates.”

Ivy Zelman in her latest “Z” Report:

“Although we strongly believe that the housing supply-demand imbalance for single-family homes will continue to drive above-average home price appreciation, just as falling mortgage rates aided pricing power on the margin in recent months, we expect the opposite effect to become evident in the coming months. As such, we project year-end home price inflation of 4.8% for 2017 and 4.1% for 2018.”

Bob Walters, President & COO of retail mortgage lender Quicken Loans:

“A modest increase in mortgage rates won’t have much of an effect on home purchases. A buyer may need to slightly re-evaluate which homes they can afford, but it’s not likely to make an impact on qualifying, in most cases.”

First American Chief Economist Mark Fleming:

“Our survey data shows that mortgage rates would have to be significantly higher to have any meaningful impact. The house buying power that borrowers have, even with rates below five percent, still remains historically strong.”

I hope this post has had value and will help you make the important decision the correct one. While I admit I’m not a lending specialist I do work with some of the best around and would be happy to refer a couple to you.

I’d also appreciate being considered working with you as your agent if you decide to move forward. I’m local, knowledgeable about the business and the area. You can read more about me on my website.

If I can be of any help, or if you would like to discuss what higher interest rates could mean to Tooele real estate, call me, .. Berna Sloan 435-840-5029.