March Housing Market Update (2021), San Clemente
Interest rates are on the rise!
While still at historic lows, these rates are playing a significant role in our current housing market, keeping demand high and allowing buyers to bid up the price of homes.
Although it hasn’t dramatically affected anything as of yet, the half-percent increase we’ve seen plays a significant factor in a buyer’s monthly payment.
On another note, Freddie and Fannie, government-backed mortgages purchased on the secondary market, will be decreasing their purchase of second home mortgages and residential income properties.
While this is likely to lessen the demand of these properties, it will be interesting to see how this plays out.
The take away from this all; I don’t think the market is going to crash and rising interest rates could be a good thing!
If you are a seller, right now is the best time to sell as things may be different in the fall. If you’re a buyer, raising rates will increase your payment, but it will also slow down the competition.