So the other day on the Renae Stucki Realtor blog we were discussing an article posted on Marketplace.org about the Fed pulling back on its stimulus and how the numbers indicate fewer people were applying for mortgages…
What exactly does that mean and how does it affect you? Well, first of all, it means interest rates rise. As the rate rises, the value of your money decreases. You’re not able to buy as much with what you actually have or qualify for. It also means that fewer people are going to be able to qualify for the mortgages being offered. That drops a lot of people out of the market.
But the biggest group of people who will feel the brunt of this are people who already own their homes and are looking to draw on their equity or who need to refinance for any reason. These people may quickly find themselves without a system of support in place. That little bit of extra money available when they need it. They make up the largest group of people who fall into this category.
It makes options hard and if you’re in a place where you want to own a home and have been interested in buying, it limits the amount of time you have to act. There’s a chance, (as rates go up), you may find yourself unable to qualify for the house you want even with good credit. You may also find yourself priced out of the market altogether. Why take the risk? Call Renae Stucki today and let us help you get started finding and buying the home of your dreams.
That’s one dream we can make come true! Happy New Years!
