Fed chair Powell has been hinting at rate cuts to stave off a stagnating economy. This could lead to buyers qualifying for a little more house or a little better view. With 30 year mortgages sitting around the mid-sixes depending of course on the strength of the borrower, a reduction that dips them below six percent could be an excellent boost to the real estate market.
People sitting on a smaller starter home with a loan note at 5% will be more likely to make the move up to a view home at say 5.9% It will remain challenging to get the 2.9% crowd to move, but their are more 5% notes than 3% loans at the moment.
Younger borrowers may feel like rates are very high right now since we just came off an extended period of more than a decade of below average mortgage rates. The 70 year average for mortgage rates runs in the mid sixes and that is where we are now.
If rates stay between 5.75% and 6.75% over the next year or two, the market will pickup some steam without any other inducement.
Homes with views in Clark County carry a very broad price range from sub-median all the way up to the billionaire club. Over the years this blog has highlighted some amazing value priced homes with decent views. As more arrive to market we will be on the scene with articles.
Meanwhile, keep a sharp eye out for rate drops, they are likely at this point.
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