Today’s Housing Market and its Effect on Tomorrow

This article is from the blog of Alan Kennedy:

With mortgage interest rates at historic lows, home buyers have been able to buy homes for a more affordable price, and able to buy more expensive homes than during times of higher interest rates. But how does that affect the future of the housing market?

Those who have bought homes at an interest rate of under 4% will not be as inclined to invest in another home when the rate hits 6% or higher. Having the same total mortgage amount for a smaller or less valuable home will seem an undesirable option. Those who were dependent on the low interest rates when buying their homes will be unlikely to move once the mortgage rate rises.

Expect to see an increase in home improvements and renovations as homeowners strive to hang onto the lower rates. Rather than taking on the added expense of the new mortgage, they will make do with what they have and alter that home as needed.

Also, expect to see fewer out-of-area job changes. If the current mortgage allows the homeowner a little more security and a little more expendable cash, they may be hesitant to change that and opt to stay in their current situation and current home.

It is understandable that people want to take advantage of the historically low mortgage rates the U.S. is experiencing of late. Understanding how today’s mortgage news can affect tomorrow’s home buying activity can help you plan accordingly.

About christinahammondhomes

Christina Hammond is currently a real estate agent for Keller Williams Greater Athens in Athens, Georgia. Her interests in real estate began when she was an undergraduate at Arizona State University, where she studied business and psychology. During her years at ASU, she apprenticed with one of the top producing real estate brokers in the area, learning the details of real estate sales in a large metropolitan area. This practical experience, combined with her university studies, further increased her interest in real estate as a career. Christina excels in developing close working relationships with clients that often grow into long term friendships. She has 15 years of real estate experience, the last 8 in the Athens area. As in Phoenix, she has fostered many connections with her clients and finds this part of her work more satisfying in this smaller venue. As Christina says, “It is enormously rewarding to help a client find a home that is right for them. Homes are the physical manifestation of many people’s dreams, and it is hard to express the satisfaction of helping someone find a home that they love.” Of course, selling real estate requires shrewd understanding of the market and competing forces. Such skills were honed through her academic experience, understanding legal contracts, business negotiations, market competition, etcetera. But from Christina’s perspective, real estate is fundamentally about the people, rather than just buying and selling. When she is contracted, her obligation to her client is paramount, and she will represent them as assertively as is necessary. Christina states, “You learn quickly that in a big city, as well as a smaller community, a great agent must be thorough and aggressive, so that the client can know that their interests are being managed effectively, and it allows them to relax and focus on the big picture.”
This entry was posted in Uncategorized and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s