If you are planning on buying a Spring Texas home in the near future, you can expect to pay more. As mortgage interest rates are on their way back up.
Over the last 14 months or so, the Federal Reserve has been keeping mortgage interest rates down through the purchase of $1.25 trillion in mortgage backed securities and home buyers benefited by locking in ridiculously low interest rates. Some of our Spring Texas home buyers locked in rates as low a 4.5% or 4.75% for a 30 year loan. Now, the party’s over and rates are on their way back up.
How fast will the interest rates for home loans rise? There are numerous predictions floating about with a level of consensus that we should expect rates to be in the mid to upper 5% range by the end of 2010.
What impact will the rise in mortgage interest rates have on the Spring Texas real estate market? Over the next couple of months, the rising interest rates will put additional pressure on Spring Texas home buyers to make buying decisions and our market will experience an increase in home sales. By mid summer, interest rates will have less impact on our real estate market. In order for our real estate market to experience an increase in sales, we need to create jobs. When people have jobs and feel confident they will continue to have jobs is when they feel comfortable in making large financial purchases.
Low interest rates, low home prices, and home buyers tax credits are great incentives for people to buy homes. But to really help the housing market we need more people with jobs.
Jill was an excellent realtor when I sold my home in Spring, TX. It was my first time selling a... read moreJill was an excellent realtor when I sold my home in Spring, TX. It was my first time selling a home myself, and she did an amazing job as far as making the process as smooth as possible, while at the same time making sure I made the best profit I could on the home. She was always checking in to make sure my thoughts/needs were being considered and met, while also offering strong suggestions based on her considerable knowledge of the area. Jill also went above and beyond during an extreme weather event that occurred while the home was on the market - I had already moved and couldn't make it back down to Spring to take care of some damage that the weather caused. I called Jill, and she was able to very quickly get someone in and perform the repair with no issues whatsoever. If I ever move back to the Spring area and I'm looking to buy a home (or sell it later!), Jill and the team at BH&G Gary Greene will be the FIRST people I contact. read less