The fluctuation of interest rates and market shifts that a buyer may experience can vary from day to day. As a mortgage banker, I typically do not see a buyer who is less willing to buy a home based solely on the interest rate.
The higher interest rates will just shift a buyer to look for something that was originally in a lower price range or in a neighborhood different than they were originally planning. As interest rates fluctuate, it’s important as real estate professionals to know that we have to educate our buyers to the constant market shift in rates and home prices.
This year, we’ve seen interest rates increase from the spring to fall by more than a full 1 percent on a 30-year fixed mortgage. We believe the purchase market and interest rates are going to continue to change in a market that is ever-changing and unpredictable.
The best we can do as professionals is to educate buyers for the upcoming shifts and make sure they are prepared, so the shift in market prices and interest rates will not deter any future purchase transactions.
Brian Acuff is a Mortgage Banker with BMO Harris Bank