In 2017 it may be difficult to navigate home buying and selling. In lieu of an available Trend Vision article, I decided to share some interesting information from an article on The California Association of Realtor’s website.
Rising Rates May Complicate 2017
Recent trends show rising interest rates are proving to raise concerns for home price projections going into 2017. Higher rates, coupled with lending conditions tightening in the mortgage market, has elicited responses from panic to resilient optimism. However, there’s still positive growth expectations driven by the prospects of lower tax rates, lower regulations and increased infrastructure spending.
Navigate Home Demands
Higher rates have barely impacted the financial markets, but it has led to rising mortgage rates which can decrease housing affordability. In turn, this decrease can potentially lower the demand for home purchases. For example, a raise in interest rates from 3.3% to 4.15% on a median home price of $304,500, could potentially increase your monthly payment by $117. That just may be enough to deter some buyers.
Interested in learning more? Download the full article now! Also, find out how the Petaluma and Penngrove real estate markets closed out in 2016.Download Article