Rates are currently settling in at the highest marks we have seen since 2009. As seen in the chart below, the sudden increase in such a short period of time is dictating a new, and unknown real estate market moving forward.
Normally, in an increasing raising interest rate market, we see a leveling off or possible decrease in pricing of the homes for sale. However, due to the incredible lack of inventory, we are seeing a slight slowdown, but not to the magnitude that we would expect with such a raise in interest rates in the past 6 months alone.
Moving forward, the expectation is for homes to stay on the market slightly longer as we are seeing an increase in inventory, with hopes that the interest rates won’t increase too much. The feeling is that if rates keep climbing at this rate, it will surely create an impact to the pricing of these homes due to the monthly affordability problem it will create for the homebuyer.
For more information, please contact:
Nick Gonchar
Home Mortgage Consultant
NMLSR ID 453491
Wells Fargo Home Mortgage | 5625 E. Santa Ana Canyon Road | Anaheim Hills, CA 92807
Cell 714-504-6425 | Fax 866-466-5645
Nick.Gonchar@wellsfargo.com | www.wfhm.com/nick-gonchar