Interest Rate Increases Leaves Worried Homeowners

Interest Rate Increases Leaves Worried Homeowners

With today’s rising interest rates speculated to go higher this year, a big change from the past few years, many homeowners are increasingly nervous  about what the interest rate increases will mean to their property values. The interest rate increases is projected to an entire percentage point later this year of 2018 according to a recent report by Freddie Mac. The interest rate increases is slated to go from end of 2017’s 3.9% to 4.9% by Q4 2018. Also according to another recent article by Freddie Mac, there is nothing for current homeowners to worry about.

Interest Rate Increases VS Home Prices

Another recent article which describes the relationship between the interest rate increases and home values, the article assures readers that home prices have no relationship to interest rate increases.  Most home owners will wonder how that could be. According to Freddie Mac home prices are driven by supply and demand and not interest rate increases. If the demand slips for housing due to interest rate increases the supply will also drop of existing  homes as many homeowners will choose to stay in their homes and at the same time keeping their current interest rate unchanged.

The Take Away

The bottom line is, if you haven’t already refinanced at the lower interest rates or have been approved for a new mortgage for a new home, the time is now. The perfect home and a great all time low interest rate is waiting for you to purchase and If you’re a homeowner and have been concerned about the forthcoming rate increases and how it will affect your home value in the future, take a deep sigh of relief-you have nothing to worry about its all about supply and demand.

I’m here for all of your real estate needs, questions, concerns and guidance, so please feel free to call me anytime. Tom Gilliam-248-790-5594

Listing: Open House Modal