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:Brian Hargrove Phone: 919-830-5233 Dated: May 13th 2018 Views: 897 About Brian: ...
View our latest blog posts in your RSS reader. Click here to access.
Grow Local Realty is a full service Raleigh NC Real Estate Company servicing Raleigh, Durham, Cary, Apex, Holly Springs, Clayton, Fuquay Varina, Garner, Wake Forest, Chapel Hill and all other Triangle areas including all of Wake County, Johnston County, Durham County, Orange County, Chatham County and Harnett County. We are dedicated to extraordinary customer service and are here to represent you with your next home purchase or the sale of your current home. Allow one our fantastic agents to assist you with your Raleigh NC Real Estate search.
Apple just announced a new campus is coming to Wake County! This annou
"Buying a house is stressful. However Jacob made the experience enjoyable and stress-free. The way he shows a house was perfect for someone such as myself. Any questions I ask he quickly got the answer back to me. Jacob will be my agent for as long as we know each other. "