Mortgage Rates May Dampen Spring Home Buying
Mortgage rates continue to rise as the Spring buying season rounds the corner. The rate increase could limit how much money home buyers may be able to borrow. Additionally, it could force some sellers to reduce their prices.
According to the MBA, rates for 30-year mortgages rose to 6.42 percent which represented a high not seen since July 2002. The rise in interest rates could definitely dampen new and pre-owned home sales as we move into the spring season. A popular time for home buyers searching for a home in the hopes of moving during the summer school break.
The higher borrowing rates are also impacting home loan applications which were down 20% from last year. However, some among us still remain optimistic. Economists are counting on the underlying strength of the economy and seasonal spring demand to pull the market through its rough patch.
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513
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