Mortgage rates have gone up like crazy. In fact, they’ve risen over a percentage just in the past week alone. But listen, if you're a real estate agent or a lender, do not freak out. It's all a matter of educating the public, educating the community.
When my parents bought a house, I think they were paying around 16 to 18% interest. Today, mortgage rates are at around 4%. Now, they’ll likely rise to five or six, and people are still going to want to buy. Why? People need homes.
I actually just wrote an offer today for my daughter and there were over 40 other offers. This home is going for about a thousand dollars per square foot, which is not uncommon for the market at this time. This trend will make some people nervous, but it won’t stop people from buying altogether. Buyers are still out there like always, however there is not enough inventory. There's not enough homes being built to actually be able to place people in with the amount our population is growing.
Putting your clients at ease is just a matter of education. Talk about the interest rates. It’s also good to mention that you can write off your home on your taxes. Now, of course, I'm not an accountant or a lawyer. Your clients should talk to qualified professionals about things like that, but for the most part, people are still buying everyone. Don't let that completely freak you out.
A 4% mortgage rate is still incredibly low. In fact, there was a time when banks were practically giving money away for free to sustain the economy. And right now we've got massive inflation. There's a lot of money out there but not enough goods and services. That is what causes the government to raise interest rates. It’s an attempt to find some balance. Don't let it freak you out. Buyers aren't going anywhere. They're still going to be out there.
