Mortgage rates are currently on the rise, but, according to First American’s Potential Home Sales Model, the rise in rates will not noticeably reduce home sales. Even if the rates went to 5 percent, which is expected to occur in the next year, home sales would barley be affected.
First American’s sales model shows that, if fixed rate 30 year mortgage rates went up to 5 percent (currently hovering around 4.5), home sales would only slightly decrease from 6.11 million to 6.1 million.
According to First American’s economist Mark Fleming, the reason why rising mortgage rates won’t significantly affect home sales is because household income, partially due to the healthy rise of mortgage rates, is also on the rise. Also, homebuyers can easily adjust to higher fixed rate mortgages by taking an adjustable rate mortgage instead.
The housing market is greatly flexible and can adjust well to small rises in mortgage rates. Flemings believes that the rising mortgage rates should not be a worry for buyers; instead, they should worry about finding the right home in today’s low-inventory time period.
Author:Kurt Galitski Phone: 714-957-6677 Dated: June 28th 2018 Views: 212 About Kurt: After 15 years of founding and running a successful boutique real estate office in Costa Mesa as a l...
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An Orange County native and Team Manager of The Kurt Real Estate Group with a heavy background in both
Marketing and Transaction Coordinating, Liz has handled it all - from listings to buyers, from the beginning stages to
the close of escrow and beyond. Coming from a digital marketing start-up in Los Angeles, Liz moved back to Orange
County to apply her keen sense of marketing knowledge to the real estate industry and it shows. Her experience in PR
and publishing provides a competitive edge to her clients and The Kurt Real Estate Group collectively.
Liz got into real estate because she saw an opportunity where she could be an asset in an industry lacking in marketing
innovation and provide a far superior service to both sellers and buyers. One thing Liz prides herself in, above all, is
customer service and the relationships she builds with each and every client. Just read the reviews. Liz strives to always
obtain the best for her clients and becoming a part of The Kurt Real Estate Group could not compliment this better.
With seven consecutive years of being featured in Orange Coast Magazine for customer service, this was the place
for her. Liz is passionate about helping people and her ability to connect with clients is unparalleled. In her spare time,
Liz enjoys hiking, skiing, and traveling. Having lived abroad in Portugal and London, Liz thoroughly enjoys culturally
Buying a house is a big moment in your life, whether it’s a first ti
"Liz helped us recently with the purchase of a new house and the sale of our old one. She was exceptional throughout both transactions, always on top of things, clearly communicating progress, providing expert advice and support when needed. Liz has a very high real estate IQ and her unique approach to buy/sell strategy delivered results for us that far exceeded expectations. She also made
a potentially painful process, not only easy, but actually fun! We will definitely work with her again.