Some people are starting to wonder if the Feds have crashed, or are going to crash, the real estate market. With the latest increase in interest rates, the home buying public is getting scared.
In the last few weeks the Feds have over doubled the mortgage interest rate. This increase has made it difficult for some to qualify for a loan, and others simply can’t not afford the payments.
In order to look at what we’re experiencing today, we need to look at history. In 2020 the Feds decreased interest rates to stimulate the real estate market. With COVID and the pandemic something had to be done to help people purchase and sell homes. So, we witnessed historically low mortgage rates.
For the last 2 years we have seen interest rates stay low, which created a buying frenzy. Money was cheep to borrow so the American Dream became a reality for a lot of homebuyers. The low interest rates also contributed to the housing supply and demand imbalance. When money is easy to borrow, people indulge.
Now rates are higher but are we really in a Crash? Do you know there is a way to avoid paying the High Interest Rates? It’s called the 2-1 Buy Down. Click here to learn more about this program that’s helping buyers purchase 2% below the going rate. This program is also helping sellers sell for market value allowing the real estate market to remain strong.
A true crash is when prices drop faster than average or price drops at an undetermined rate. Right now prices are staying steady, but the good news is people are not overpaying for homes. Homes are selling for appraised price. This is good news for buyers and sellers.
To check out currently available homes for sale in Dallas, Plano, Frisco, and the surrounding areas Click Here.
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If you want to speak to me about Frisco or the surrounding area, please feel free to book a call or zoom. Or email Troy@TroySage.com