What Does The Interest Rate Hike Mean For The Seller?
When interest rates are raised even slightly the consumer's pocket will be negatively affected. Suddenly his mortgage payment will go up, his car payment, the interest on his credit card debt and any personal loans and other debt are likely to cost more. Every spare dollar should be used to get rid of debt.
The .25% hike will mean very little to the Home Seller right now. The 'priced right' home will sell in this bouyant marketf as the economy continues to grow. An interest rate hike, although it is marginal, will definitely affect the buyer's psyche as he knows that the interest rate is not going to fall any time soon. The motivated home buyer will want to lock in a purchase sooner rather than later. First time home buyers should make a move to get into the housing market right away.
Home owners who have an Adjustable Rate Mortgage may want to refinance their home and fix the interest rate while they still can. The Mortgagor could choose to have a higher fixed interest rate that may cost the home owner more initially, however if they are going to be staying in their home for the long term, then it may be to their advantage to take on that fixed rate option.
The American Dream is to be a homeowner and that will not likely change. When interest rates were at their highest, there were still people who wanted to own a home, so the .25% hike is not going to shake the market too much. This is unlikely to be the end of the interest rate hikes and if you are thinking about buying a home you had best think about doing that sooner rather than later. You are going to be buying the most home for your money right now.
Considering your options? Buying or Selling a home? I would love to assist you in your decision. Call me for a confidential chat - Karen Browder 704-534-9334 or email Karen@KarenBrowder.com
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