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Brexit | Team Sterling real estate blog

Tuesday, November 15, 2016   /   by Matthew Biggers

How the Largest Interest Rate Spike Since 2013 Affects Homebuyers and Sellers

Regardless of your opinions about the campaign trail, election, or its results, I’m betting most of you have own a home, have owned a home in the past, or plan to in the future. And what I want to talk about is interest rates, forecasts, and real estate buying power, and how it affects both sellers and buyer alike.
 
Higher rates lowers the price buyers can pay and sellers can sell for
I’ll cut to the chase. For every 0.5% (one-half percent) rise in mortgage interest rates, buyers purchasing power decreases 4-5%, and if it spikes by a full 1% it results in a 9-11% decrease in buyers purchasing power.
 
Now before you freak out, know that in the grand scheme of things 0.5% is a blip on the radar, granted a costly one if you want to buy a nice home or sell your home to the widest pool of buyers. But when you couple this rise with the fact that the only reason the Federal Reserve postponed rate rises to far was because of BREXIT and that the Fed shows ...

  brexit, buyers, condo, election, federal reserve, forecast, homes, interest rate, mortgage, rates, real estate, realtor, sellers, townhome, townhouse

Compass - Team Sterling
Matthew Biggers
3107 Peachtree St NE, Suite A-1
Atlanta, GA 30305
404-808-3003

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