What Rising Mortgage Rates Mean for Buyers and Sellers

Now that we know who is going to be president, mortgage rates have been rising, and they’ll keep rising. Whether you’re a buyer or seller, this means the time to enter the market is now.

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Why have mortgage interest rates increased so much over the last 30 days?

The primary reason is that we just came out of a presidential election cycle, and there was so much uncertainty in the marketplace that investors took their money out of the stock market and put it into the bond market. Now that we know who is going to be president, the money has shifted back from the bond market into the stock market. This is one of the reasons why we’ve seen the stock market jump over 19,000 points.

The bond market has a direct correlation to mortgage interest rates. As the money came out of the bond market, we saw mortgage rates increase by the biggest amount we’ve seen in two years. For you buyers who’ve been waiting, now’s the time to enter the marketplace because rates are projected to go higher in 2017.

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Whether you’re a buyer or seller, now’s the time to make your move.

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How do mortgage rates affect your monthly mortgage payment? For every quarter point that they go up, your mortgage payment goes up by $30. As rates increase, downward pressure is put on affordability. This means that sellers are facing the same situation in that the best time to put their home on the market is now before rates increase and there will be fewer buyers out there who can afford to buy their property for what they want to sell it for. Whether you’re a buyer or a seller, if you’re interested in making your move in the market now, please don’t hesitate to give us a call. We’d be happy to help!