Rise in Rates Spur Some Buyers Off Sidelines

By
Services for Real Estate Pros with Liberty Mutual

CNBC is reporting today that the last 3 weeks' spike in interest rates has caused some buyers to get off the sidelines, go to contract and lock in rates before they go even higher.

The fear of loss is an interesting thing. Buyers were fearful of making easy money just 3 & 4 years ago so they often made a deal with the devil to get into investment homes or primary homes way above their means. And here we see the fear of higher rates getting people to buy today.

So does that mean we raise home prices to "scare" people into buying? Well, if the other 25,000 home sellers in  Middle TN went along, it would probably work. But this is a market driven economy and that simply won't happen.

But it looks like some buyers are willing to pass on potential price decreases to ensure a low interest rate. If that's what's holding back your buyer, let me know and we'll get them a great rate. If your seller would like to assist with a rate buy down, I'd be happy to provide a rate in the high 4% range.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Tennessee Williamson County Brentwood
Groups:
Mortgages

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
995,757
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

It is inevitable...people wait for the prices to drop and then the rates rise.

Jun 23, 2008 06:18 AM #1
Ambassador
452,058
Paul McFadden
Environment Control - Kent, WA
Janitorial. Kent, WA.

Hi Kevin: It's good to hear that. The realtors and loan officers need a shot in the arm with some purchase activity. Obviously, we'd like the rates to be lower for our customer but it doesn't always work out that way! Have a fantastic day!

 

Paul

Jun 23, 2008 08:48 AM #2
Rainmaker
728,914
Larry Brewer
Benchmark Realty LLc - Nashville, TN
Nashville Real Estate

It's good to know that I'm not the only one who sees the obvious. THe buyers looking for low prices have already missed the best opportunities. Now if they wait a little longer, they can get high rates to go with it. Most of the crowd plays follow the leader, that's why they always get caught buying at the top instead of the bottom.

Jun 23, 2008 05:35 PM #3
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
8,471

Kevin Michelson

MBA, Nashville Insurance
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: