The guessing interest rate game continues; rates are now around the 5% mark with many mortgage brokers believing that the rates are going to rise even more. Those that have gotten pre approved and locked in their interest rate will be the big winners. Most agents believe this is going to hurt home sales. We are in the minority as we think this is going to push the buyers that have been sitting on the fence into a more aggressive buying mood as they try to lower the sale price to compensate for the high interest rate, this will only work for them with the sellers that have room to move from their list price, are overpriced or need a sale. With all these interest rates on the rise they are still well below the average interest rate over the last 50 years.
-Len