Mortgage interest rates are rising, but why is this good news?
You might think this effect would push housing prices down by making them less affordable, but Fannie Mae’s research indicates the opposite. They’ve determined that when people feel bullish about the economy, they’re more than willing to take on a bigger mortgage commitment.
While it’s true that higher interest rates have a negative effect on marginal buyers, our buyers here in Florida aren’t marginal. They’re pretty well-established, and if they’re not already paying cash, a bump in the monthly rate won’t keep them from getting their dream home.
Strength in the economy has the biggest impact on home prices—not interest rates. Interest rates will keep going up, but that’s good news. The future is bright for the economy, and demand for Florida real estate will continue to be strong and unaffected by these interest rate changes. Home values are stable, strong, and will continue to be a great investment.
Lastly, there are some really innovative new mortgage financing products on the market right now for people near retirement age, people who are self-employed, and first-time buyers.
If you’re in one of those three groups, give me a call so I can help your move to Florida. I look forward to hearing from you.