With interest rates projected to rise an entire percentage point in 2018 (according to arecent report, the rate for a 30-yr fixed-rate mortgage is projected to jump from the end of 2017’s 3.9% to 4.9% by Q4 2018), homeowners are starting to speculate about how the increases will affect their property value.
But according to lender Freddie Mac, there’s nothing to worry about. In arecent articleabout the relationship between rising interest rates and home values, Freddie Mac assured readers that home prices are not directly impacted by mortgage rates.
But how can that be? According to the lender, home prices are determined by supply and demand—not by interest rates. So if demand dips due to rising interest rates, the supply will also dip as people choose to stay in their homes and keep their current interest rate—which will keep prices stable.
If you’ve been concerned about the rising interest rates and the effect they’ll have on your home’s value, take a deep breath—you’ve got nothing to worry about.
Author:Michelle Fish Phone: 919-721-1434 Dated: May 13th 2018 Views: 498 About Michelle: ...
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"My husband and I decided we wanted to buy our first home and we started looking online for homes and started calling a few realtors. Some of which were not very professional, and did not really go at the fast pace we were wanting. I found myself being uninformed, stressed, and with little homes available. That is until, thankfully, my husband and I met Kim, and the buying process changed completely. At first, Kim met with us to see a house at our convinent time, and she already had a few more houses ready for us to go see. This impressed me a lot since other realtors would only show what I requested. Kim is an upmost professional realtor. She went over lots of information we had no clue about, and she communicates at all times, and answers all questions at any time. She really had our family's best interest at heart. I know other realtors we talked with just wanted us to check THEIR website for available homes. Kim NEVER dropped the ball on us and always worked so hard doing above and beyond what we expected. She wanted us to really love our home. We had lots of bumps in the road regarding different aspects of our loan and Kim really helped fix all of those and really made the process go smoothly. If you are looking for a professional, hard working, agent, I would totally recommend Kim! She really goes the extra mile for her clients. "