I had the chance to join Chris Davies for a little "Street Talk." I thought you might find these thoughts about interest rates to be interesting. Remember, the real estate market is a living, breathing thing and can change rapidly.
If you'd like current updates on the market, or wish to discuss whether it's a good time to buy or sell in your specific neighborhood, call today! (206) 999-5599
Interest Rates Have Been Dropping
"As far as the interest rate environment goes, you've had three straight weeks of interest rates dropping. More than a half point has been shaved off that 30-year fixed over the last four weeks. When you view that perspective, it makes a huge impact on affordability."
"When we talk about year-over-year comparisons, inflation actually started mid-year last year. The Fed was slow to react to it."
Predictions for 2023
"If you are claiming doomsday for the real estate market this year, look at it from this perspective: The first six months of 2022 were super hot, but with cooling ended at a 5% appreciation rate. If 2023 has its predicted -5%, then the real estate market will essentially be flat for two years. Remember--we have a 50% run-up the previous three years. I'll take that any day!"
"The interest rate environment is still volatile. We're being fooled a little bit right now because it's been declining but again, i's almost like there's been a two-month break from the Fed. Rates will rise. However, it (Fed raising rates) doesn't directly impact short-term or long-term mortgage rates. But they will go up before they come back down. The question is: Where does it drop? That's where we need a crystal ball!"
There's so much more to learn! Click this link and listen to the show at your leisure. Note that there are two links, one for each hour of the programming. And keep an eye out on my Facebook page for upcoming shows.