@natale_realtors No one is looking to trade their interest rate Trading your rate means owning one home with a certain interest rate, most likely below 3.5%, selling that home and purchasing a new home with a new interest rate, most likely in the 6.5-7.5% range now. Although many are sitting on tons of equity, they are still not making the move. Why is that? The higher interest rate is not enough of a trade-off to take action during a recession. People stay with what they know. Their low interest rate and most likely low mortgage payment is probably the one saving grace they have while the cost of everything else is going through the roof. This is very important for one sole reason. It’s further limiting inventory. Everyone seems to just be staying where they are and not moving. While many will attack a real estate brokerage owner like myself as greedy and wants more home sales for our own pockets, the truth is 17% of the entire American economy comes from housing. If the mass population decides to stay put through the winter of 2022 into 2023, that will not be good for the entirety of the country. Housing is the lifeblood of the American economy whether people like it or not, and many jobs come from the business of buying, selling, investing and construction of real estate. If inventory stays low, prices can only come down so much since real estate is a supply and demand business. It won’t come down low enough to a point to outweigh the higher rates. If the rates start sliding down over the winter months, you’ll start to see more people trade their interest rate and move again. If you need help navigating the current market in your neighborhood, don’t hesitate to contact us. We’re here to help.
No one is looking to trade their interest rate
Trading your rate means owning one home with a certain interest rate, most likely below 3.5%, selling that home and purchasing a new home with a new interest rate, most likely in the 6.5-7.5% range now. Although many are sitting on tons of equity, they are still not making the move. Why is that? The higher interest rate is not enough of a trade-off to take action during a recession. People stay with what they know. Their low interest rate and most likely low mortgage payment is probably the one saving grace they have while the cost of everything else is going through the roof.
This is very important for one sole reason. It’s further limiting inventory. Everyone seems to just be staying where they are and not moving. While many will attack a real estate brokerage owner like myself as greedy and wants more home sales for our own pockets, the truth is 17% of the entire American economy comes from housing. If the mass population decides to stay put through the winter of 2022 into 2023, that will not be good for the entirety of the country. Housing is the lifeblood of the American economy whether people like it or not, and many jobs come from the business of buying, selling, investing and construction of real estate.
If inventory stays low, prices can only come down so much since real estate is a supply and demand business. It won’t come down low enough to a point to outweigh the higher rates. If the rates start sliding down over the winter months, you’ll start to see more people trade their interest rate and move again.
If you need help navigating the current market in your neighborhood, don’t hesitate to contact us. We’re here to help.