Artwork

Konten disediakan oleh Mike Hicks. Semua konten podcast termasuk episode, grafik, dan deskripsi podcast diunggah dan disediakan langsung oleh Mike Hicks atau mitra platform podcast mereka. Jika Anda yakin seseorang menggunakan karya berhak cipta Anda tanpa izin, Anda dapat mengikuti proses yang dijelaskan di sini https://id.player.fm/legal.
Player FM - Aplikasi Podcast
Offline dengan aplikasi Player FM !

Where Are Interest Rates Heading?

 
Bagikan
 

Manage episode 151123759 series 1016958
Konten disediakan oleh Mike Hicks. Semua konten podcast termasuk episode, grafik, dan deskripsi podcast diunggah dan disediakan langsung oleh Mike Hicks atau mitra platform podcast mereka. Jika Anda yakin seseorang menggunakan karya berhak cipta Anda tanpa izin, Anda dapat mengikuti proses yang dijelaskan di sini https://id.player.fm/legal.


Selling your Idaho Falls home? Get a free home value report
Buying an Idaho Falls home? Search all homes for sale

Last week, I attended the annual Megacamp for Keller Williams. Gary Keller discussed his and the experts' forecast for our real estate market, and they all agree that a shift is approaching our market due to changes in interest rates.
The Fed wants to see interest rates between 5% and 6% because the rates we have now are not healthy for the economy. What does this mean for you?
Let me give you an example. The other day, I had some folks lock in a 30-year conventional loan at 3.625% percent. If they borrow $200,000, they would have a principle and interest payment of $915. If rates go up one by one percent, they can only borrow $178,000 in order to have a payment of $917. If rates go up to that target range of 5.625%, to keep the same payment of $917, you would only be able to borrow $159,000 to buy their home.
That is a 22% loss of buying power due to a two percent change in interest rates. There will still be people moving, and first-time buyers will still come onto the market. However, all the people who bought homes with these low rates may want to upgrade someday. When they recognize their loss of buying power, these people won't move. They'll stay where they are.
The consequence is that fewer homes will come on the market, and there will be fewer buyers. At this point in time, the experts don't believe that interest rates will affect home value. So if you're interested in buying, lock in these low interest rates now.
If you have any questions, give me a call or send me an email. I look forward to hearing from you!
  continue reading

16 episode

Artwork
iconBagikan
 
Manage episode 151123759 series 1016958
Konten disediakan oleh Mike Hicks. Semua konten podcast termasuk episode, grafik, dan deskripsi podcast diunggah dan disediakan langsung oleh Mike Hicks atau mitra platform podcast mereka. Jika Anda yakin seseorang menggunakan karya berhak cipta Anda tanpa izin, Anda dapat mengikuti proses yang dijelaskan di sini https://id.player.fm/legal.


Selling your Idaho Falls home? Get a free home value report
Buying an Idaho Falls home? Search all homes for sale

Last week, I attended the annual Megacamp for Keller Williams. Gary Keller discussed his and the experts' forecast for our real estate market, and they all agree that a shift is approaching our market due to changes in interest rates.
The Fed wants to see interest rates between 5% and 6% because the rates we have now are not healthy for the economy. What does this mean for you?
Let me give you an example. The other day, I had some folks lock in a 30-year conventional loan at 3.625% percent. If they borrow $200,000, they would have a principle and interest payment of $915. If rates go up one by one percent, they can only borrow $178,000 in order to have a payment of $917. If rates go up to that target range of 5.625%, to keep the same payment of $917, you would only be able to borrow $159,000 to buy their home.
That is a 22% loss of buying power due to a two percent change in interest rates. There will still be people moving, and first-time buyers will still come onto the market. However, all the people who bought homes with these low rates may want to upgrade someday. When they recognize their loss of buying power, these people won't move. They'll stay where they are.
The consequence is that fewer homes will come on the market, and there will be fewer buyers. At this point in time, the experts don't believe that interest rates will affect home value. So if you're interested in buying, lock in these low interest rates now.
If you have any questions, give me a call or send me an email. I look forward to hearing from you!
  continue reading

16 episode

Semua episode

×
 
Loading …

Selamat datang di Player FM!

Player FM memindai web untuk mencari podcast berkualitas tinggi untuk Anda nikmati saat ini. Ini adalah aplikasi podcast terbaik dan bekerja untuk Android, iPhone, dan web. Daftar untuk menyinkronkan langganan di seluruh perangkat.

 

Panduan Referensi Cepat