So many clients have been asking the same question: Will interest rates come down and if so, when? Buyers want to know what do if they can no longer afford the home they want – and sellers want to know what to do in response.
The worldwide inflation brought on by the pandemic, and the Fed’s response in raising interest rates in the U.S. will affect many parts of the economy, particularly real estate. Some jumbo mortgage rates have risen above 7% and many buyers have paused to see if this is a short- or long-term issue. No one knows for sure but buyers and sellers will adjust to the new reality – buyers with more flexible financing and sellers by adjusting their price to where the market is.
We have seen volatility before, and our market has managed to survive very well. It will this time too.