How Do Rate Changes Affect Buyers and Sellers?



We’ve already seen changes in interest rates in the wake of the election, and we could see more soon. It’s important to know how these rate changes affect home buyers and sellers.


The election is over and 2017 will be here before you know it, so today, I wanted to discuss interest rates as we head toward the new year. For an expert opinion, I’ve brought in my preferred lender, John Ragland from Supreme Lending, to talk about it.

So what’s happening with the results of the election?

As John says, the results were a bit shocking from the perspective of the market; the market was expecting Hillary Clinton to win. He added that many expected interest rates to move even lower with the surprise Trump win due to investors getting spooked by the change, which would in turn cause them to buy mortgage bonds and lower interest rates even further. This didn’t happen, though, and investors ended up seeing that as positive.

Many investors moved money out of the stock market because futures went down. Investors parked their money in other places. This caused interest rates to get higher by a quarter of a percent, as John points out. Since this could be a knee-jerk reaction, John says, we need to wait and see how the market digests. He doesn’t expect rates to go back down, but we’ll need to keep an eye on whether the trend of rates going up will continue.

Additionally, it’s important to understand how rates impact affordability for buyers and sellers alike. When we talk about shifting rates, a change of 1% equals a 10% change in housing cost. That means if you’re pre-approved for a $200,000 home and rates went up by 1%, you’ll now be approved for just $180,000.

Rate changes have a huge effect on both buyers are sellers.

In short, rate changes affect what buyers can afford, as well as what sellers can get for their homes. As John points out, rates going from 3.75% to 4.25% is not that big of a jump, and it’s very possible that they will do that. In fact, just a year ago, rates hovered around 4.5%. It’s very important for buyers to understand that we don’t know where rates will be next year. Depending on what the Fed decides, rates could be at 4% or higher by next year. Rates have a big impact on your mortgage payment.

It’s much easier to purchase now while rates are low because the difference over 30 years is huge.

If you have any mortgage questions for John, you can reach him at (678) 495-2800.

If you’re ready to take advantage of low rates before they go up, give me a call or send me an email soon. I’d love to work with you!

18 comments :

  1. Nice content!! Yes this is very important which you are said in the video, pricing is the big things in real estate business, buyers & sellers play most important role. So this is helpful articles. Thank you author. You can check more details on house assignment Toronto that is really good place for the information and make a deal for real estate assignment.

    ReplyDelete
  2. Wonderful video that you have shared here about the real estate market. Really I agree with you, property Rate Changes are directly affects the buyers and sellers behavior. Keep sharing this type of informative videos here. Residential real estate servicing Edmonton

    ReplyDelete
  3. Really I agree with you, Market rate changes are affects to the buyers and sellers behavior. Buying Waterfront Homes Bay St. Louis at the affordable price.

    ReplyDelete
  4. それはあなたがここで不動産の買い手と売り手の行動について共有した素晴らしいビデオです。 あなたのビデオは、買い手と売り手の行動に影響を与える要因についてもっと知るために非常に有益で有用です。 この記事をここで共有してくれてありがとう。 鎌倉 中古物件

    ReplyDelete
  5. This is very interesting, but it is necessary to visit on this link: webstagram

    ReplyDelete
  6. Mobile iPhone Repair—iPhone Screen Repair To Battery Replacement, We’ve Got Your Back! Rancho Cordova, Folsom, Elk Grove, Roseville, Davis, Carmichael, 24/7" for more info click here iPhone 6s Plus repair.

    ReplyDelete
  7. Great article, very useful and explanation. Your post is extremely incredible. as we provide We want to buy your house Uk at affordable prices. for more info visit our website.

    ReplyDelete
  8. This information is meaningful and magnificent which you have shared here about the real estate. I am impressed by the details that you have shared in this post and It reveals how nicely you understand this subject. I would like to thanks for sharing this article here. Evict Tenants Nyc

    ReplyDelete
  9. Very well explained. Great work done by you. Need to sell home fast in austin, contact here with fastcashhomebuyers.org for more information

    ReplyDelete
  10. I got so involved in this material that I couldn’t stop reading. It’s a great pleasure reading your post. It’s useful information. I am impressed with your work and skill. Thank you so much. houses for sale Queens NY.

    ReplyDelete
  11. You have done a good job with your knowledge that makes our work easy because you are providing such good information. Keep sharing this kind of knowledge with us. houses for sale Bronx NY

    ReplyDelete
  12. jimmyzkustomz
    Do you find that your vehicle is missing a little something? Know that there are many solutions to customize your car.Can adopt various modifications to improve

    ReplyDelete
  13. Places you need to visit in 2020? Upgrade your travel photos with these lightweigh camera that pack a punch. Enjoy the world ‘s best reviews to travel with Things to do.

    ReplyDelete
  14. evolvous
    Azure helps you to build, deploy, and manage applications using your preferred tools and frameworks. Designed for hybrid cloud.

    ReplyDelete
  15. faragomotors
    Farago Motors FZCO is a leading specialist in regional and international automotive re-export and supply chain solutions

    ReplyDelete
  16. yourselfideal
    Nowadays most people shop online but everyone knows shopping online is a hard struggle. According to a recent research percentage of online buying is increasing every day. There are a lot of websites available on the internet which provides you options of buying online to fulfill your need.

    ReplyDelete
  17. nomadux
    Our team at Nomadux has proven expertise and knowledge in hiring, managing, and directing remote teams on behalf of our clients to ensure the highest standards of performance.

    ReplyDelete