With the steep rise in long-term rates in the past few weeks, 30Y mortgage rates have climbed to well above 7%. You would think that would depress the housing market, and in some segments it does. As we've said many times here, there is no such thing as "the" housing market. There are different tranches which make concepts such as "median house prices" uninformative unless one know what segment(s) is/are being addressed. All that said, here's the point of this post: With the rise in mortgage rates, in many areas and segments, sellers are having to lower their asking price and make other concessions to sell their house. And especially for buyers who are wanting to downsize and might be paying cash for a new place (e.g., boomers who have small or no mortgages on the house their selling), they might have lucked out. Let's just hope they don't thank Trump for making this happen.
[EOP]
No comments:
Post a Comment