Rates Move & Affect Buyers/Sellers
As we said last week, mortgage rates have taken a very sudden major turn upwards. This definitely will affect BOTH buyers and sellers. This is because this makes money more costly to borrow. Well, since the surge occurred, over a week ago, the markets have backtracked slightly. After jumping over a full percentage point, they came back not quite 2/10 of a percent this past week. So,. this will also affect the markets. However, let's make one thing perfectly clear. Rates are generally trending up. They may moderate and fluctuate from here on out, but you can be almost certain that by the end of 2013 they will be higher than they were at the end of 2012, and possibly a bit higher than their present level, although not by a huge amount.
For buyers this means only one thing--borrowing will get more expensive than it is now. So, if you've delayed looking for the home of your dreams (or a good investment property), stop wasting your time and start looking! Every quarter percent rise will add hundreds if not thousands to your monthly nut.
If you're a seller, the rise has importance for you as well. The longer you wait, the more costly it will become for buyers to pay your reasonable price for your home. They may have to bid lower across the board, or drop out all together! What to do? Get your house ready for the market and get it priced (by us) and get it on the market. Questions about buying or selling? About how to prep your home to sell, or what it's worth? CALL US: Peter: (415 279-6466; Jane; (415) 531-4091. We'd be happy to help.